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Bitcoin just posted its first weekly green candle after five consecutive red weeks. This transition represents a remarkable recovery after a long period of decline. Many analysts go further.
They predict that the bear market is over in February, and a more positive phase may have already begun.
After months of large capital flows from the market, new positive signs have emerged. These signals reinforce this scenario.
Why the 23 month cycle theory of Bitcoin?
A recent analysis conducted by an experienced trader caught the attention of cryptocurrency investors.
The analysis claims that Bitcoin typically reaches 23 months after its all-time high (ATH) in each cycle.
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The market has now reached exactly the 23 month mark since the last ATH release. This timing is completely in line with the pattern of the previous cycle.
“Bitcoin hit the bottom of the bear market exactly 23 months after the ATH in each cycle. We are now at 23 months. This has never failed.” I mentioned Convo Trading it.
a description Veteran trader Peter Brandt makes this observation a stronger argument than many other market narratives. The model suggests that the bear market may end in February. It also indicates that recovery may begin next month.
The overall market capitalization increased by 6% yesterday. It increased from $2.19 trillion to $2.32 trillion. This recovery reflects growing investor optimism. Many now see opportunities after Bitcoin and altcoin prices have dropped dramatically.
In addition, Google Trends data shows that searches for “buy Bitcoin” have reached their highest level since 2021. This trend indicates To get new investors.
However, other analysts consider this scenario premature. They think The market needs at least six additional months before a lasting recovery can occur. They base this view on historical data patterns on the chain.
In addition, stablecoin net inflows to exchanges were negative in the last week of February. This data may weaken the argument for a 23-month bear market.
Leon Weidmann, head of research at Lisk, explained that stablecoin flows show more currencies leaving the markets than entering them. This trend indicates that the buying pressure is not enough to support the continued rise of Bitcoin.
“Look at the chart. Every major increase in BTC over the past year has been driven by huge payments from stablecoins (green bars). Now? Dark red. Almost $10 billion in net flows. BTC will not receive sustained supply until this situation reverses. It’s that simple, He said Leon Weidman.
Although the market has recovered after several weeks of decline, it may require more clear confirmation before the bear market can be declared. Recent analysis by BeInCrypto He identifies the $70,000 level as a key threshold in current conditions. Bitcoin must regain and maintain this level to continue growing.
