Cryptocurrency analysis company Alphractal, in its new statement evaluating Bitcoin’s long-term price movements, pointed out that BTC takes on a more mature and consolidated structure with each new cycle.
According to Alphractal’s analysis, Bitcoin historically reaches cycle peaks at multiples of the 2-year moving average (2Y SMA), but these peaks occur at lower multiples with each new cycle, indicating that the market is maturing and volatility is decreasing.
- The company summarized the peaks in past cycles as follows:
- In the early periods, Bitcoin peaked at 2Y SMA ×15 levels.
- In 2017, this multiplier dropped to 10.
- In the 2021 cycle, there was a decline first to ×5, then to ×2.65 levels.
- In the most recent cycle, Bitcoin failed to re-exceed the 2.65 multiplier, suggesting that gains are narrowing and the market is becoming more stable.
Alphractal noted that the current 2Y SMA ×2.65 level is around $159,000, adding that this level will be a significant resistance point if Bitcoin gains momentum.
Finally, the company stated, “Although gains are more narrowly realized, the potential to move well beyond the 2-year average in each cycle is still live, indicating continued long-term strength in the market.”
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/previous-bitcoin-cycles-analyzed-new-peak-emerges-for-btc-price-pay-close-attention-to-this-level/