Categories: Bitcoin Business

Four Bitcoin Bull Markets: Big Lessons to Learn

Click here to view original web page at dailyhodl.com

Wall Street’s so-called “experts” are creatures of habit. They behave in patterns that are as predictable as the tides.

When a market soars into bubble-land, they pour out of the woodwork to cheer the “powerful fundamental forces” that are driving prices higher.

When the bubble inevitably bursts, they scramble to predict its demise.

And precisely when a brand-new bull market is in the making, they pronounce its last rites.

Rarely is this pattern as clear as in cryptocurrencies, a much-maligned asset to begin with.

Here are two strident Bitcoin eulogies. One refers to the “mother of all bubbles.” The other says that there’s no future in crypto.

Neither mentions that both the market and the market analysts are subject to the same cyclical pattern that repeats itself regularly.

Bitcoin enjoys a massive bull market, culminating in a frenzied parabolic surge of speculation – the period we call “the climax.”

It comes crashing down as speculators beat a panicky retreat.

It consolidates for months, creating a dead zone of sideways action or further decline, from which only the diehard survive.

And it launches a new bull market, repeating the cycle – again culminating in a blast-off climax.

But here’s the key: The story begins in September 2010, just eight years ago, when Bitcoin was trading at close to 6 cents. Today, this same asset is trading at around $3,600 per token, a return of over 5.9 million percent.

No, the path from a half-dozen cents to thousands of dollars isn’t easy. Nor is it a straight line. But that’s the whole point: It happens in a cyclical pattern, and that cycle is ultimately predictable.

Bull cycle #1

September 2010 to June 2011

Bitcoin begins the cycle with a powerful but non-parabolic rise – from 6 cents to 80 cents by April 2011. Until this point, the rise is driven mostly by Bitcoin users and long-term investors who understand the technology and share the vision of its founder.

Then, suddenly, average investors begin to pile in. But the market is still minuscule, extremely illiquid and unable to accommodate crowds.

So prices go ballistic: Bitcoin literally blasts off to the stratosphere, surging from 80 cents to a high of $36. (See blue-highlighted area of chart.)

The crash follows immediately thereafter, as Bitcoin plunges by 93%. Much like today, naysayers re-emerge – ranting about “a failed experiment,” raving about “the death of Bitcoin.”

Apple's Secret Project

Bull cycle #2

October 2011 to April 2013

Like in the prior bull cycle, Bitcoin enjoys a very solid run from its $2 low to about the $10 level, up fivefold.

Long-term buy-and-hold investors (nicknamed the “HODLers”), who bought early in the prior cycle, are delighted. But anyone who joined the prior cycle during the frantic run-up to $35 is still frustrated.

The frenzy returns in early January. The king of cryptos breaks out above $13 and starts accelerating to the upside once again, exploding to a nosebleed bubble high of $260 in April 2013.

Total rise from bottom to peak: about 13,000%. But again, the overwhelming bulk of the move is jammed into just two short months, from February 2013 to April 2013.

The bust strikes with even-greater fury. In less than a week, Bitcoin is back down to $50 by April 15 – an instant 80% crash.

Bull cycle #3

April 2013 to December 2013

As before, the recovery from the April low of $50 is initially slow, reaching the $100 level by Oct. 1, 2013.

And as before, it’s the last two months that deliver the giant price explosion – to $1,160 by December, a surge of 1,160%.

Irrational exuberance infects not only average investors, but also the media, which sings the praises of crypto … until, that is, the next bust strikes, ushering in Bitcoin’s longest bull market at that time.

From its $1,160 high made in December 2013, Bitcoin plunges to a low of $150 by January 2015, an 87% decline.

The bear market is so long and so deep, Bitcoin evangelist Andreas Antonopoulos says he’s worried about the future of crypto.

But as before …

Even at the bottom, investors who bought at the beginning of the cycle still have tripled their original investment.

Moreover, this point is also the beginning of the greatest Bitcoin bull market of all time …

Bull cycle #4

January 2015 to December 2017

It takes Bitcoin a couple of years to recover from its great bear market of 2014.

Then, the big action begins in 2017, as Bitcoin launches a solid move from roughly $1,000 in January to about $5,000 in October.

As in the three previous cycles, however, it’s not until the last two months of the bull run that the public jumps in with both feet. Prices rise like a rocket. Bitcoin surges to its high of nearly $20,000 by December.

And of course, the crash inevitably followed – taking Bitcoin down to $5,800 on Feb. 6, 2018, a 70% decline, and further down to $3,600 one year later.

Many analysts, not personally familiar with the prior bull cycles, argue as if this is somehow “a new phenomenon.”

But as you’ve clearly seen, it’s anything but.

It’s déjà vu.

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

When a market soars into bubble-land, they pour out of the […]

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama

Recent Posts

Terrorists are turning to Bitcoin for funding, and they’re learning fast

Representational image of Bitcoin. (File: Bloomberg) By Nathaniel Popper Hamas, the militant Palestinian group, has been designated a terrorist organization… Read More

22 mins ago

Latest Faketoshi says he conveniently ‘lost the hard drive’ containing billions in Bitcoin

Just yesterday we told you how there was a new Faketoshi in town, staking a questionable claim to the Bitcoin… Read More

22 mins ago

Study Suggests Scarcity Could Drive Bitcoin Prices to $60,000 by May 2020

Share Tweet Send Share Bitcoin price predictions have been coming thick and fast in recent months as the world’s top… Read More

22 mins ago

“Bitcoin will never hit 50k” says crypto skeptic Peter Schiff

For a man that wants nothing to do with Bitcoin , economist and Euro Pacific Capital CEO Peter Schiff never… Read More

22 mins ago

Casa Releases Node Monitor Service to Improve Bitcoin Network Health

Casa, a crypto firm that provides a private key management service and Bitcoin node machine, has unveiled a node monitor… Read More

23 mins ago

ETC/ETH Technical Analysis: Ethereum Classic breaks higher

Ethereum Classic vs Ethereum: Classic is making a comeback today An important price level has been broken 0.037673 looks to… Read More

23 mins ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More