Folks from the digital world have been waiting for the storm to pass by, as it continues to wither the crypto assets. The torrential lashes by varied factors have shrunk down the business to a market capitalization of $850 B. Significant portion of the brunt is borne by the star crypto Bitcoin which has dropped below its ATH from the previous cycle.
BTC price at the time of press is changing hands at $19,363.3, with gains being negative by 8.03%. The kingpin earlier today brushed levels of $18,845.1. Whilst, investors and traders eagerly await for the market to return back to normalcy. A proponent from the industry brings in hopium in the community amidst the prevailing FUD and panic.
Is A Trend Reversal Fast Approaching The Horizon?
A renowned proponent from the industry brings in optimism amidst all the negativity, by shedding light on Bitcoin’s halving event. The protagonist cites that, Bitcoin’s cyclical bottom was around 780-880 days, after each of the previous halvings. And that it has been 767 days since the halving on the 5th of November 2020.
In a coincidence, the star crypto is inching closer to its HTF logarithmic support curve. It is known that supply and demand economics validates the halving model and imaginary logarithmic support curve. While the block rewards drive the total supply inflation, BTC miners provide constant sell pressure into the market.
The chart prepared by the partisan portrays the graph of BTC price versus the total supply. Learning from the chart, despite the oscillations in price, BTC has been ranging alongside the halving reward eras. Since the effect of supply inflation, the price gradually decreases with time. It now almost seems to flatten out.
Summing up, while it is the first time in the history of Bitcoin that it has broken below the previous cycle’s ATH. It is also for the first time that the intersection of the logarithmic support curve is seen below the previous cycle’s ATH. Collectively, the proponent believes that the bear market bottom is not far away.