Despite Bitcoin’s already eye-catching returns this year, prominent analyst Ali Martinez believes the cryptocurrency is still in the early phase of a bull market.
Bitcoin is having a year to remember. The leading cryptocurrency has gained 158% in the past 12 months, and aims to end the year on a high off the back of anticipation of the launch of a spot Bitcoin ETF in the U.S.
Nevertheless, the best may still be in store for Bitcoin, according to crypto analyst Ali. A recent chart shared by the analyst highlights Bitcoin’s historic four-year cycle.
However, it goes one step further to present an overview of price action at different stages of the cycle.
Each cycle typically includes a Bitcoin halving, with one due in April 2024. It also culminates in a new all-time high for BTC, with the most recent $69,000 coming in November 2021.
Per the latest analysis, Bitcoin is only in the first year of what typically “translates to three years of bullish trends.” The foregoing suggests that the cryptocurrency’s price may still rally for the next two years before eventually topping around December 2025.
The rally would usually culminate in a year-long bearish trend, as recorded in 2018 and 2022. If history repeats itself, then Bitcoin’s next bear market may begin in late 2025 and last into 2026, according to the analysis.
#Bitcoin design around four-year cycles, driven by its #halving events, often mirrors its price action.
Historically, this translates to 3 years of bullish trends followed by 1 year of bearish correction. As per this cycle, $BTC is in an upward phase, potentially extending… pic.twitter.com/7B4sIpiWH8
— Ali (@ali_charts) December 29, 2023
Possible Deviation
Although Bitcoin has historically had four-year price cycles, a changing investment landscape challenges the norm. The potential launch of a spot Bitcoin ETF in the U.S. could open up the way to the institutionalization of BTC.
With household names such as BlackRock and Fidelity poised to embark on massive marketing for traditional financial clients seeking Bitcoin exposure, the asset’s price could deviate from its regular pattern. Only time will tell if such an outcome plays out.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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