In a recent development leading investment bank Morgan Stanley weighed in when the ongoing Bitcoin bear market will probably end. Interestingly enough, they share some similar views with analysts who have made predictions in the past.
Bitcoin halves an important factor
In a article released by the investment bank, Morgan Stanley pointed out Bitcoins importance as the leading crypto and how the Bitcoin halvingwhich will take place in April 2024, could by extension affect the price and other crypto tokens.
Bitcoin halving is a deflationary measure that takes place every four years, where miners’ rewards are ‘halved’, creating scarcity. According to the bank, this event could potentially trigger a bull run, as has been the case in the past.
The article further mentioned how there have been such bull runs in the past after the three halving events that have occurred and how the bull run has lasted twelve to eighteen months afterward.
Morgan Stanley’s forecast mirrors that of several crypto analysts who have predicted that the Bitcoin Halving could trigger the next bull run. Specifically, Delphi Digital co-founder Kevin Kell, while highlighting the numbers showing that the next bull run was close, said: noted that Bitcoin has broken to a new all-time high (ATH) seven months after the last two halvings took place.
Understanding the Four Phases of Crypto
While trying to avoid giving a definitive timeline on when to invest ahead of the next bull run, Morgan Stanley noted the importance of learning about the “four phases of cryptocurrency prices” so that one can arrive at a conviction can come about at the right time. to invest. This four phases They are said to roughly correspond to the four seasons of the year.
The first phase is ‘Summer’, where Bitcoin makes the most gains, and that comes after the halving. It is said that the bull run starts with the event and continues when Bitcoin’s price reaches its previous peak. Next is the ‘Autumn’, when the price ‘surpasses the old high’. This is the period in which the bull market then runs its full course reach a new high.
After ‘Fall’ comes ‘Winter’, and that is when the bear market surfaces as this is the period when investors lock in their gains, resulting in a massive sell-off. This usually happens between the ‘new peak and the next low’. Historically, there have been three winters, each lasting about thirteen months.
‘Spring’ is the final phase in the cycle and the one that potentially triggers the next bull run (another summer). This is the period “preceding each halving,” during which Bitcoin’s price “generally recovers from the cycle lows, but interest from investors is often weak.”
By understanding these stages, crypto investors could be well prepared to take advantage of the next bull run to make the most profits.
BTC continues recovery as sentiment recovers | Source: BTCUSD on Tradingview.com
Featured image from Forbes, chart from Tradingview.com