Key facts:
Changpeng Zhao recounts that he bought BTC in 2014 at $600, only to see it drop to $200 later.
It highlights that this is the fourth bearish cycle that bitcoin has experienced.
As the cryptocurrency market continues to face one of the biggest crashes in its entire history, Binance CEO and founder Changpeng Zhao (also known as CZ) spoke on his Twitter account about a trend that look at the price of bitcoin (BTC) once it reaches all-time highs (ATH).
The CEO of Binance, one of the most important exchanges in the market, shared a thread on twitter to remember that this is the third cycle bass guitarist who is living with cryptocurrency.
He thus explained how, since 2013, a trend can be seen that means that, during the last nine years, the value of BTC move from all-time highs to low prices.
He mentions in his tweet the most cited historical highs and lows in the history of bitcoin: in 2013 it reached a maximum of more than USD 1,000 and then fell to a minimum of USD 200, in 2017 it almost reached USD 20,000 to drop to USD 3,000 . The drop in the current cycle is from $68,000 to $18,000 (so far).
“Q: CZ, how do you see this market?
I do not know. It is my third cycle.
ATH 2013 $1k, then $200 minimum for one year.
ATH 2017 $20k, then $3k minimum for one year.
ATH 2021 $68k, then $20k minimum.I’m not a good TA, but do you see a trend?
In this way, with the price of bitcoin below USD 20,000 for this June 18, after having achieved an ATH of USD 68,000 last year, CZ sees a pattern in this historic drop.
2014, the year CZ experienced its first bear market
The CEO of Binance tells on Twitter his experience with the volatility of bitcoin. He says that the first time he bought BTC was in 2014, when he was at $600, just before it fell to $200.
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He assures that he was one of the few investors who bought during the bearish cycle of 2014. That was the beginning of his history in the cryptocurrency market, living up to now three cycles of fall after the ATH.
But the purchase of Changpeng Zhao preceded other sharp moves in the market. For example, in 2013 the value of bitcoin began to recover after its first bearish cycle that occurred in 2011. At that time, it was considered that a bitcoin bubble had formed, which was caused by the high demand it had in a short period of time. time frame. The coin for 2011 had been quoted at 35 dollars per unit, but then it fell to 2 dollars, as we reported in CriptoNoticias.
Due to this, the behavior of the market in 2014 was not an unprecedented event. When the coin reached $1,000 that year, and then touched $200, the second downward cycle reported by bitcoin in its history was completed.
In 2017, another ATH along with the popularity of ICOs
By the beginning of 2017, the bitcoin price returned to the 1,000 area and even exceeded it. Then, by the end of the same year, its value rose rapidly to reach $20,000.
During 2017, the high demand in the cryptocurrency market led to the popularization of ICOs or Initial Coin Offerings, according to CZ. Nevertheless, by 2018, the bitcoin price plummeted to $3,200. The cryptocurrency hovered around this amount in what would be the end of the third “crypto-winter” of the cryptocurrency market (the second lived by the businessman and founder of Binance).
In 2020 DeFi, NFTs and P2E games are born
The year 2020 begins with bitcoin rising in price rapidly. start a new rally bullish and the pioneering cryptocurrency reaches $20,000 again and hits highs above $29,000.
Changpeng Zhao cites in his tweet how since the start of the Covid pandemic, in March 2020, decentralized finance (DeFi), non-fungible tokens (NFT) and games to win cryptocurrencies (Play2Earn) became popular thanks to this rally market bullish.
By the end of 2021, the price of bitcoin managed to reach USD 69,000 for the first time in history, as reported by CriptoNoticias. This turned out to be the end of the rally bullish that began in the middle of that year, when it touched USD 29,000.
Since then, the price of bitcoin has been declining, until it is worth USD 18,000 today. This implies the breaking of a historical pattern. The decline is so steep that it leads BTC to trade below its 2017 ATH. Despite this, CZ believes that the trend continues. Like other analysts, he seems to expect a rise in bitcoin in the coming months.