When will Bitcoin See a New All-Time High? And when can we see an end to the Bear Market?
At the time of writing, Bitcoin's (BTC) price is trading 51.42% below its all-time high, and the whole crypto market has been in slow decline. As a result, there is a lot of uncertainty right now, and many investors are now asking when this vicious bear market will end, and we will see a new all-time high.
Crypto Bear Market Cycles
Previous crypto market cycles can help us estimate roughly when the current bearish trend has the highest probability of ending and when a new bull market will begin. For example, the last cryptocurrency bear market lasted about 2.5 years, as, after 2.5 years, we had a new high price.
Two and half years measured from the November 2021 peak brings us to March 2024 as a possible time to declare the end of the bear market. This means that we could expect a new all-time high around that time. The next halving event is expected to occur around May 2024, which falls in line with the past cycles.
Bitcoin Halving Cycle
In the long-term, Bitcoin seems to follow a 4-year cycle, also known as Bitcoin's 4-year halving cycle. During each halving event, the number of Bitcoins awarded to miners in each block is cut in half. One of the most fundamental concepts of economics is that if the supply of something is restricted and the demand for it stays the same or increases, then its price rises.
This is one of the main reasons why the Bitcoin price tends to recover after each halving event. For example, after the third halving event in May 2020, Bitcoin ended its bear market and went parabolic afterward.
If history is to repeat again and Bitcoin continues to follow its 4-year halving cycle, the next parabolic bull run can happen as soon as 2024.
Bitcoin’s price influence on other crypto
There is no doubt that Bitcoin is having a significant impact on the prices of other cryptocurrencies. Since Bitcoin is the first and most well-known cryptocurrency, its price is often used as a benchmark for other currencies. When Bitcoin prices are high, other cryptocurrencies tend to follow suit. This means that if you're looking to invest in another crypto, it's important to take into account Bitcoin's current price levels.
Bottom line: If the numbers are correct and the bear market could end in March 2024, there are still ways to trade and make a profit. We have written a blog about how you can manage this. You can check the blog down below.
Cryptocurrency Bear Market: Strategies of a Smart Investor
The cryptocurrency market has gone through several bull and bear cycles in the decade since its inception. Savvy investors leverage both these cycles to optimize their investment portfolio, rather than letting their emotions and gut reactions guide their investment. In this article, we review key strategies that savvy investors use during a cryptocurrency bear market cycle.