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Bitcoin breaks the record for the longest drop in quotes

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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