Bitcoin Price preparing for the next leg of ‘Acceleration Phase’ – Fidelity Research
A recent report of Fidelity Digital Assets asked if the price of Bitcoin had already seen a “blow off top” cycle or if BTC (Btc) is in the cusp of another “stage of acceleration.”
According to Fidelity Analyst Zack Wainwright, bitcoin acceleration phases are characterized by “high volatility and high income,” similar to the price action seen when the BTC pushed more than $ 20,000 in December 2020.
While Bitcoin’s year-to-date return reflects an 11.44% loss, and the property drops almost 25% from all time high, wainwright Says The recent performance of the post-acceleration phase is in accordance with the average BTC drawdowns compared to previous market cycles.
The bitcoin historical downside after acceleration phases. Source: Research on Fidelity Digital Assets
Wainwright suggests that Bitcoin is at a stage of acceleration but closer to the completion of the cycle, as March 3 represents the day 232 of the season. The previous peaks lasted slightly longer before a correction set.
“The acceleration phase of 2010 – 2011, 2015, and 2017 reached their tops on the day of 244, 261, 280, respectively, suggesting a slightly more drawn stage at each twist.”
Related: Mara Holdings plan big $ 2b stock offer to buy more bitcoin
Another parabolic rally on cards for bitcoin?
The price of Bitcoin has weakened below $ 100,000 since Feb. 21, and a great deal of momentum and positive emotions consisting of “Trump Trade” has been lost and replaced by tariff-war-induced volatility and fear of markets that the US can lead to a recession.
Despite these irritating factors and the negative impact they have on daily bitcoin prices, large creatures have continued to be added to their BTC stockpiles.
On March 31, CEO approach Michael Saylor announced That the company gained 22,048 BTC ($ 1.92 billion) at an average price of $ 86,969 per Bitcoin. On the same day, Bitcoin Miner Mara announced plans to sell up to $ 2 billion in stock to get more BTC “sometimes.”
Following in the footsteps of companies of larger cap, Japanese firm Metaplanet has released 2 billion yen ($ 13.3 million) on bonds on March 31 to buy more Bitcoin, and March’s biggest news came from Gamestop announced A $ 1.3 billion modified note notesa part where can be used to buy bitcoin.
Recent purchases and statements of the intent to buy from various international and public-based public companies have shown a price-bag-bagal approach to accumulate BTC as a property reserve, and it emphasizes positive price exceptions in the future held in institutional investors.
While it is difficult to determine the impact of institutional investors in Bitcoin on BTC prices, Wainwright said a metric to guard is the number of days during a rolling 60-day period when cryptocurrency hits a new high time. Wainwright posted the following chart and said,
“Bitcoin has usually experienced two major surges during previous stages of acceleration, with the first example of following this election cycle. If a new full time is on the horizon, it will have a starting base near $ 110,000.”
Bitcoin count of all time high day (rolling 60 days). Source: Research on Fidelity Digital Assets
This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.
