With a market capitalization of around $670 billion, Bitcoin is trading in an average price range of $35-36K at the time of writing.
Bitcoin has seen significant price volatility in the past few weeks, as Bitcoin reached the level of $58,000 in the second week of May, then fell below $40,000 and continues until this article is published.
In fact, Bitcoin dropped to $31,000, albeit for a short time.
After noticing the median peak recently, famous crypto market analyst Benjamin Cowen confirmed that the peak of the market cycle in Bitcoin is still far away.
As shown in the circled chart above, Bitcoin has been ahead of both Cycle 2 and Cycle 3 through various stages.
However, the currency has failed to keep up with any of the previous cycles.
It is necessary to note that the above Bitcoin market cycle ROI chart is measured from the bottom of the market cycle.
Commenting on the above illustration , Benjamin Quinn stated:
In order to keep track of the recent market cycle, Bitcoin will have to rise by $300,000 by the end of the year.
Over the past six months, Bitcoin has recorded a 100% gain.
If the same 100% applied to the current market price of $36,000, Bitcoin would only cross the $72,000 range.
Plus, according to analyst Benjamin Quinn, the journey from $30,000 to $300,000 certainly seems far fetched at the moment.
Highlighting other obstacles in the path of Bitcoin, Cowen added, stating:
Basically, the higher the market value, the more difficult it is to move the price.
For Bitcoin, it would take a lot more volume and with each cycle it would be harder to push it up the curve.
The same analyst also suggested that it would be necessary for institutions to intervene to take the bitcoin price to the level mentioned above.
Quinn explained this by saying:
This is the cycle of institutions.
I’ve always suspected every institution will have FOMO around Bitcoin in 2021… I think a lot of institutions will continue to flow and this cycle will be somewhat different than any other we’ve seen.
The current cycle is very similar to the 2013 cycle, but it has been significantly extended.
The time between the different movements has increased in this cycle compared to the one in 2013.
In order for us to have hope of keeping up with the previous pace, Bitcoin must enjoy a very quick recovery and it must start unleashing its glow over the next few months, or else there will be no chance of keeping up with the third cycle…
I really don’t think she can keep up.
He concluded that a further drop in prices to the $20,000 range is possible at this point, but the market will soon recover and make a new high again.
Quinn confirmed that there are also similarities with the 2019 cycle, as he explained this by saying:
We’ll go down or to the side for a while, go through this assembly phase, and then continue on to the next phase of our journey and this will just be our starting point for a new peak.
This is in the end what I see will happen.