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The largest cryptocurrency by capitalization has been falling in price for the eighth week in a row, which is a record in its history.
Bitcoin sets records for the duration of the drop in quotations. This follows from a recent report by Glassnode. It is alleged that the cryptocurrency for the eighth week in a row closes trading at ever lower levels.
According to analysts, the market should be prepared for the fact that conditions may continue to deteriorate until at least some form of “stable bottom” is formed. Bitcoin historically traded as part of a four-year cycle of both bears and bulls. At the same time, cycles are often associated with halving. The chart below shows the rolling cumulative annual growth rate (CAGR) for bitcoin over four years.
Since 2015, bitcoin’s payback percentage has largely stuck to a downward trend. A significant collapse in payback was recorded during sales in May 2021. According to Glassnode, it was that sale that was the starting point of the current bear market.
Meanwhile, the value of the monthly Relative Strength Index (RSI) indicator has entered the green zone. Traditionally, in bear markets, this is a signal of the beginning of the accumulation phase near the absolute price lows for bitcoin.
If the pattern repeats again, the market may enter a multi-month accumulation phase, and the bottom for bitcoin has already been reached or is about to be formed. So far, according to Glassnode, investors are switching to bitcoin solely as an escape from risks, rather than in order to invest for a long time.
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