Bitcoin $BTC macro indicators look attractive for long-term investors, fatpigsignals team says
Bitcoin , the largest cryptocurrency, is changing hands more than 75% down from its all-time high. Meanwhile, a number of macro indicators tell us that traders are on the verge of massive purchasing opportunities.First and foremost, in terms of four-year Bitcoin cycles, the market is on the eve of the"regular" bottom period. In two previous cycles, the orange coin bottomed 17-18 months prior to the next emission cut.
While the 2012-2016 cycle resulted in a 4,918% upsurge of the Bitcoin price, its 2016-2020 rally"only" made its price rocket by 1,414%. That said, it is highly likely that this was the last cycle with over 10x returns . This pattern is called diminishing returns, and it signals about the progress of the asset.It is also interesting to track maximum drops of the Bitcoin price for various cycles. In the first cycle of its mainstream adoption, it reached its bottom after an 86.
By contrast,"red" zones should be interpreted as the perfect"sell" opportunity periods. The last one was registered in Q1, 2021, when the first crypto set its first peak in a bullish rally over $65,000. However, analysts highlight that past performance does not guarantee returns in the future: BTC might stay in an"accumulation" zone for a very long period of time.
These calculations are not designed to foresee the accurate day of the next Bitcoin cycle bottom, analysts claim. Meanwhile, they could be productive in terms of identifying"oversold" and"overbought" phases.In general, despite the fact that the worst may be yet to come for Bitcoin bulls, the whole situation tells traders that the "risk/reward" indicators look way more attractive than in 2021.
Launched by a hard-hitting team of cryptocurrency enthusiasts, Fat Pig Signals is among the most reliable Telegram groups with technical analysis and buy/sell signals for Bitcoin and major altcoins.
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