Bitcoin Repeats Past Cycles: What Awaits Investors in 2024?

Analysts from Glassnode have identified a striking similarity between Bitcoin's current behavior and its movements in previous cycles from 2015-2017 and 2018-2021.

According to them, Bitcoin in 2023-2024 is mirroring historical patterns, which could lead to new market fluctuations.

These cyclical patterns include phases of reaching a new high, prolonged correction, hitting a bottom, consolidation, and subsequent resumption of growth. Specifically, in previous cycles, there were 19 significant price drops in 2011-2013, 27 in 2015-2017, and 26 in 2018-2021. The current cycle has seen only 6 such drops so far, but experts warn of a possible increase in their number.

One of the reasons for further volatility is that about 2.8 million BTC were acquired at prices higher than the current level. This creates potential risks for the market.

Special attention is being paid to the activity of speculators who started entering the market at the beginning of 2024. This situation resembles the events of last August, when more than 2 million Bitcoins were in loss, leading to panic selling. Analysts suggest that a similar scenario could repeat, followed by a period of consolidation, as it happened in September-October last year.

Investors are advised to closely monitor the market and consider historical patterns when making decisions. Being prepared for possible fluctuations and analyzing past cycles can help minimize risks and make the most of market opportunities.