After a big crash on August 5, the crypto market is improving. Bitcoin’s price has risen to $55,589, up 12.2% from yesterday’s low, thanks to recovery signs in the US futures market.
Veteran trader Peter Brandt is optimistic, seeing similarities between this drop and the 2016 halving that led to the 2017 bull run.
Bitcoin’s Current Market Cycle Mirrors Historic Bull Run
The comparison to the 2015-2017 cycle is significant because it ended with a historic bull run, where Bitcoin hit record highs. Veteran trader Peter Brandt’s observation suggests that, despite recent setbacks, Bitcoin might be on a similar path that could lead to future gains.
In a recent tweet, Brandt highlighted that in 2016, Bitcoin’s price dropped from $650 to $474, a 27% fall after the halving, before soaring to $20,000 by December 2017.
Looking at Bitcoin’s current scenario, the price has decreased by 26% from its post-halving high of $64,962. Brandt views this as a potentially bullish sign. Bitcoin has seen a significant drop similar to 2016, falling by 26% to around $49,050 from its peak of $70,000 in late July. However, the cryptocurrency has shown resilience, recovering to $56,000 in early trading on August 6.
Bitcoin Price Gains Amid “Extreme Fear” in the Market
The BTC price chart showed gains of 4.82% over the past day, reaching $55,848.13. The 24-hour low and high were recorded at $49,121.24 and $56,271.37, respectively.
Meanwhile, the Crypto Fear and Greed Index has entered the “Extreme Fear” zone for the first time in two years, coinciding with outflows of $168.4 million from U.S. spot Bitcoin exchange-traded funds.
On August 5, the index, which gauges market sentiment for Bitcoin and the broader cryptocurrency market, dropped to a score of 17 out of 100, the lowest since July 12, 2022.
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