Arcane Research analysts are convinced that bitcoin has reached the bottom of the bear market it has been in for most of 2022, and believe that the most popular cryptocurrency may be past the worst.
More specifically, according to a MarketWatch report, the Arcane team of analysts processed statistics from previous bear markets in which bitcoin found itself in over the past few years and public data from transactions that have taken place on various blockchains, concluding that the cryptocurrency has literally “stalled”, having “hit” the lows at which it could be found.
It is noted that bitcoin, “caught” its historic highs in November 2021, reaching a “breath” of $ 69,000, before “plunging” almost 70% as of June, where it even reached levels of $ 17,601, according to CoinDesk data, while on Tuesday it traded at levels of $ 19,160, registering a loss of 1.2%.
According to Arcane Research’s data, a similar picture was seen in the two bear markets that marked the cryptocurrency in the past, when it was observed that the 2014 recession cycle lasted 407 days with the crypto losing 85% of its value during this period, while the 2018 one lasted 364 days and the cryptocurrency lost 84% of its value.
Now, bitcoin is counting about 350 days since reaching its historic high and subsequent decline, prompting analysts to believe that bitcoin’s current bear market will have a similar duration.
Low Volatility
Yet another element, however, that strengthens Arcane analysts’ estimates is the low volatility of the cryptocurrency after the two bear markets of 2014 and 2018, which has been observed in bitcoin trading lately, as noted bitcoin’s volatility in the last 30 days is at its lowest level since October 2020.
Note that bitcoin has been trading in range for 120 days, while the low volatility period in 2018 lasted 130 days and in 2014 lasted 280 days, according to Arcane analysts.
