There are much information and news turmoil around Bitcoin and cryptocurrencies, a market possibly trying to stabilize for the benefit of capitalizing on its price and getting out of a trend that has caused so much delay. In Bitcoin Motion, you will find more information.
Possibly many investors will be waiting for what could be a bearish cycle closure, where the price is still lowered if you want to start acquiring cryptocurrencies.
Many factors have contributed to digital currencies significantly reducing their value, but this has not disappeared from the financial scene; on the contrary, they have managed to strengthen themselves to the point that the investments of large corporations have provided the much-needed support.
A financial crisis that affects the world powers, including the US and the European countries that have been significantly affected after the war between Ukraine and Russia, has been substantially affected, a scenario that is not at all positive. Still, that one way or another must be dealt with.
What are Bitcoin cycles?
Bitcoin cycles represent the elementary basis for decision-making during crypto investment processes; consequently, these are delimited, and you can have a vision or expectation of what could happen with these assets in a given period.
When talking about cycles, exclusive reference is made to a stage where Bitcoin mining plays a crucial role since new units of these digital currencies are issued through this process.
Bitcoin works systematically where, through an integrated protocol called Halving, this process of creating digital currencies is controlled, which occurs in four years or every 210,000 blocks, reducing by half the emission of Bitcoin.
It occurs because Bitcoin has a limited number of coins to be issued, which is 21 million units, which, when reaching its maximum amount, could make it much more expensive.
During these halving processes, the crypto market fluctuations are usually drastic. Still, if this year 2022 has been characterized by something, several external factors have been added to this phase that has violated the average performance of cryptocurrencies.
These phases have a variable duration period. Below we find the duration periods of the halvings that Bitcoin has experienced:
The first Halving occurred in November 2012 when Bitcoin was revalued by 9,000%. The bullish phase lasted around 371 days, to fall later.
The second Halving occurred in 2016, where, after 525 days, a value more excellent than 19,000 dollars was reached, subsequently generating a bearish phase.
To close during 2022, Bitcoin is considered to be going through its third Halving after reaching historic highs of more than 60,000 dollars; the duration of this bullish phase was 546 days.
How do you recognize a change in trend?
To determine the moment in which a cryptocurrency is going through a change in trend, it is essential to be informed; for this, several tools and technological advances make the analysis process more accessible.
It is essential to know the market stage in real-time in which a particular cryptocurrency is to be able to define if it is the right time to enter into investing. In addition, of course, the characteristics of each cryptographic project must be known.
One of the easiest ways to know the movements and possible trends is to timely monitor the Exchange and the fluctuations that this show, as well as the opinions that arise in cryptocurrency investment forums or chats.
How long could this bullish transcendence last?
We are facing a completely unusual financial market, where inflation and the economic measures of the traditional market are significantly disrupting the digital market, which is why it is not possible to determine precisely if we are really in transcendence or if it is only a rise that could trigger a new setback.
Bitcoin zeroes the last weeks of July with new upward movements; even though there is much controversy surrounding the sale of Tesla’s Bitcoin, this fact was generated spontaneously, which did not allow significant changes to be observed in the movement of Bitcoin.
Now we are facing a decision to decrease the interest rate issued by the Fed; it only remains to evaluate investors’ reaction to this new measure that could benefit the crypto market.
Let’s remember, no one imagined that the economic and financial market could trigger a recession that many try to hide, but that is already a fact.