Bitcoin has broken the psychologic $20,000 barrier but can it continue its dramatic run? BeInCrypto revisits historic price advances as the alpha crypto powers ahead into price discovery.
Bitcoin’s First Major Rally
From November 2011 to January 2012, a Bitstamp chart showed one of the first-ever major short-term rallies in bitcoin. The emerging coin rose by 229%, from $2.25 to $7.33.
This was just the beginning and as impressive as the chart looked at the time, the real bull market was just about to start.
The first authentic bitcoin bull market lasted roughly 740 days, a little over two years, and increased by more than 51,000%. The price rode the wave from $2.25 to $1,163 in true parabolic fashion.
Bitcoin’s long-term upward momentum finally ended in November of 2013, leading to a subsequent cooling off period.
The First Major Correction Leading to a New All-Time High
The more than 51,000% increase started to accelerate interest in the crypto space. And by 2013, crypto exchanges such as OKEx, Bitfinex, Kraken, Huobi, Bittrex had all jumped aboard.
OKEx, Huobi, and Bittrex were founded in 2013 and as prices started rolling over in 2014, new entrants dipped their toes in the water during the first big bitcoin bear market.
From Nov. 30, 2013, and for the next year and two months, the bitcoin correction lasted 410 days and provided negative returns to the tune of 86%.
But after roughly two years and a month, on Feb. 23, 2017, bitcoin continued to prove itself as one of the best stores of value in the world after its price surpassed the previous historical high of $1,163.
And although it retreated somewhat during the next couple of weeks, the cycle resumed and the bull market had arrived again.
The Publicized Bull Market, the Correction, and Current Price Action
It’s been almost three years since bitcoin broke its previous all-time high at $1,163. Since then, it accelerated in price by more than 1.590% to hover between $19,600 and $20,000, according to several major exchanges.
This period marked another hype cycle with outrageous forecasts and the FOMO of everyone and their grandmother. Of course, nothing goes up in a straight line and the cycle reversed in favor of the bears again.
This swept away all bullish hope for the next 364 days, driving the BTC price down by more than 84% to $3,100. The time it took for bitcoin to reach a new all-time high again was roughly the same as the previous cycle, approximately three years.
Bitcoin had to rally six-fold to break the $20,000 mark and open the door to what appears to be a new bull cycle.
So far the data suggests that major bitcoin bull runs are shrinking in percentage terms, however, the alpha crypto continues to climb and outperform nearly all other assets. Some argue that it has already cemented its status as a safe-haven asset.