- According to senior analyst Vetle Lunde of K33 Research, Bitcoin is currently in the midst of a bear market rally with its prices peaking around $45,000 by May 20th.
- Bitcoin had an 84% drop in 2018 but bounced back in 2019 as prices surged to over $13,800 at its peak.
- Crypto experts on Twitter have dubbed this year’s surge as a “hated bull market”
The world’s most well-known cryptocurrency Bitcoin is once again making waves, with its soaring price indicating a potential peak of around $45,000 next month, according to K33 Research’s senior analyst Vetle Lunde.
With a market value that has risen by 80% this year alone, Bitcoin has outperformed even the traditional risky assets, making the tech-heavy Nasdaq index seem like a thing of the past. The rise comes after a 12-month massive decline when prices plummeted and bottomed out last November.
Lunde has revealed that the drop and the subsequent recovery bear a striking resemblance to 2018-19’s bear market pattern in terms of length and trajectory. Vetle Lunde said in a note sent to his clients last week that bottoms in both cycles occurred around 370 days.
Bitcoin’s prices suffered tremendously in 2018, with an 84% drop, but it had an incredible comeback in early 2019 as prices surged to $3,700, only to skyrocket by the end of June 2019, which saw prices at an all-time high of $13,800.
According to crypto experts on Twitter, Bitcoin’s rise this year has been dubbed a “hated bullish move” because traders were waiting for continued sell-offs. Typically, this type of ‘hated’ bull market begins during a phase of extreme pessimism but gains momentum with time.
As investors reduce risk in anticipation of an extended downward slide, a bullish bandwagon starts to form. In a note sent to his clients, Lunde noted that the hated rally of 2019 ended with a significant blow-off top. He added that BTC resumed trading at a 40-60% drawdown from its 2017 ATH, and the early 2023 rally has all the hallmarks of a similarly detested bullish trend.
Bitcoin: Still in the Bear Market or Already Bullish?
While the overall sentiment toward cryptocurrency cannot be considered bullish, the trends suggest that things could be looking up soon.
Analysts at crypto exchange Bitfinex noted that though current bitcoin performance suggests the bottom might already be behind us, a full year has yet to pass since the 2022 bear market rally. They believe that the first and second quarters of 2023 could see high volatility amidst bearish macro conditions, similar to what we saw during early 2020, just before Bitcoin rallied for eight consecutive green candles.
They also warned that although the current signs are somewhat optimistic, everyone should still be cautious about the ongoing trend of ups and downs before buyers can conclude whether they are finally out of the treacherous waters.
With the recent news about Bitcoin’s potential peak at $45k, a significant boost against its previous downfall, enthusiasts remain hopeful that the current bullish sentiment will continue to rise.
