Bitcoin breaks the record for the longest drop in quotes
The largest cryptocurrency in terms of capitalization has been falling in price for the eighth week in a row, setting an all-time record.
As reported by Glassnode, the cryptocurrency has closed trading at increasingly lower levels for the eighth week in a row.
According to analysts, the market should be ready for conditions to keep deteriorating as long as there is no form of a stable base. Historically, Bitcoin has been traded within a four-year cycle of both "bears" and "bulls". Furthermore, the cycles are often associated with halving. The graph below shows bitcoin's four-year cumulative annual growth rate (CAGR).
Since 2015, Bitcoin's percentage payback trend has largely followed a downtrend. A significant collapse in payback was recorded during the May 2021 sell-off. According to Glassnode, that sell-off was the starting point of the current bear market.
Meanwhile, the Relative Strength Index (RSI) monthly indicator entered the green zone. Traditionally, this is a signal of the beginning of the accumulation phase near the absolute bitcoin lows in bear markets. If the pattern repeats again, the market may enter a multi-month accumulation phase, and the Bitcoin bottom has been reached or is about to be formed.
In the meantime, Glassnode believes that investors are switching to bitcoin simply as a risk aversion rather than as a long-term investment.
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