Understand Crypto Market Cycles To Predict BTC's Direction!

<p>&nbsp;"Hmm, will the price of BTC continue to rise or fall after this?"</p><p><br /></p><p>The cryptocurrency market is just like the traditional market but digital assets have their own cycle, so there are those who really believe that the current movement is at the beginning of a new cycle.</p><p><br /></p><p>Following on from Bitcoin (BTC) as a benchmark, here is a typical structure of a crypto market cycle:</p><p><br /></p><p>BTC price peaked at a new all-time high.</p><p>BTC then experienced a plunge of 80% or more.</p><p>Prices finally bottomed out almost exactly one year after the previous cycle high.</p><p>BTC began to recover and took about two years to reach new all-time highs.</p><p>BTC continued to rise for another year before topping the next cycle high.</p><p>Then the cycle repeats.</p><p><br /></p><p>The consistency of the cycle is not coincidental as it is driven by larger macro trends, however it is important to note that BTC is not an inflation hedge as many believe but rather a hedge against currency devaluation.</p><p><br /></p><p>It is well known that the BTC halving that will happen in April 2024 is not the main catalyst for BTC to go up, but it is a strong narrative that can certainly push the price higher plus if the spot BTC ETF is approved.</p><p><br /></p><p>The subsequent string of recovery in central bank liquidity has been the main support for recovery in risk assets this year especially crypto, BTC price may reach its new all-time high by the fourth quarter of 2024.</p><p><br /></p><p>Most of the largest economies in the world are burdened with large debts while in the United States (US) the fiscal deficit is expected to worsen and this means that more debt issuance will occur.</p><p><br /></p><p>Just after reaching $44,452, BTC price which is currently trading at $43,908 has recorded a slight decrease of about 0.37% in the last 24 hours but still gained 16.19% over the last week.</p>