There were too many things to forget in 2022, but the bad news keeps coming for crypto. Both Bitcoin (BTC) and Ethereum (ETH) failed to top their previous cycle highs for the first time by year-end.
2022 was the first year that Bitcoin and Ethereum closed lower than their previous cycle highs.
Institutional crypto research firm Delphi Digital revealed the gloomy end-of-year price metrics on Jan. 3. It added that the 200-week moving average was also a critical level that had never been broken in previous cycles.
“BTC had never failed to maintain its 200-week moving average, which has historically been a key support level for cyclical bottoms.”
Lengthening Crypto Cycles
The previous cycle high for BTC was $20,000 in December 2017. It fell below this level for the last time in early November as FTX collapsed. Bitcoin has not reclaimed this price zone since and is now lulling around 16.5% below it.
Additionally, Bitcoin is still trading well below previously solid price floor indicators such as the 200-week moving average. This is currently at around $24,400, according to Woo Charts. BTC is currently 31% below this level which is also a record low compared to previous cycles.
The Bitcoin Realized Price is at $19,700, still way above actual market price levels. The Realized Price measures the value of all coins in circulation at their last moved price. It could also be considered as an approximation of what the entire market paid for their coins.
Ethereum is not in a better shape, having also closed lower than its previous cycle high. ETH prices peaked at $1,450 in January 2018, and they’re currently lulling 16% below that at around $1,200.
Waves of FUD and large-scale meltdowns last year have battered crypto markets. There has also been a massive macroeconomic storm to deal with. However, cycles could also be lengthening, which means a lower chance of a recovery in 2023.
BTC and ETH Price Outlook
BTC prices are up marginally from weekend levels but remain range-bound. There has been virtually no volatility over the past week when most of the planet has been on holiday. At the time of writing, BTC was trading at $16,696 as the tedium continues.
Ethereum is in a similar situation, having inched up just 1.3% on the day. As a result, ETH was changing hands for $1,216, according to CoinGecko.
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Source: https://beincrypto.com/2022-becomes-first-year-btc-and-eth-closed-lower-than-previous-cycle-highs/