In 2022, there were far too many events to recall, but cryptocurrency’s problems persist. By the end of the year, neither Bitcoin (BTC) nor Ethereum (ETH) had managed to surpass their previous cycle highs.
2022 marked the first time Bitcoin and Ethereum closed below their cycle highs.
On January 3, institutional cryptocurrency research company Delphi Digital unveiled the depressing end-of-year price figures. The 200-week moving average, which had never been breached in earlier cycles, was also mentioned as a crucial level.
BTC had never failed to maintain its 200-week moving average, which has historically been a key support level for cyclical bottoms.
2022 was the first year #BTC and $ETH closed below previous cycle highs.
Increasing Crypto Cycle Length
BTC reached its previous cycle high in December 2017 at $20,000. Early in November, when FTX dropped, it finally dipped below this level. Since then, Bitcoin has failed to recapture this price range and is currently lagging 16.5% below it.
Furthermore, historically reliable price floor indications like the 200-week moving average are still significantly below where Bitcoin is currently trading. According to Woo Charts, this is presently trading at about $24,400. BTC is already 31% below this level, which is also a record low compared to other cycles.
At $19,700, the Bitcoin Noticed Price is still significantly higher than current market prices. The value of all coins in circulation as of their most recent price movement is represented by the realized price, and it is also a rough estimate of what the market as a whole paid for its coins.
Ethereum, which also closed below its previous cycle high, is not in a much better situation. Prices for ETH reached their highest point in January 2018 at $1,450 and are now lulling 16% below that level at about $1,200.
The crypto markets were hammered last year by massive meltdowns and FUD waves. There was a significant macroeconomic storm that needed to be managed as well. Cycles may also be growing more extended, which would reduce the likelihood of a return in 2023.
Cycles rhyme, but at times completely change. That’s due to the influence of a Cycle on a much longer timeframe. For example, #bitcoin 4YR Cycles won’t repeat similarly forever. Below is an example of a “consolidation” 4-yr Cycle. (Not a prediction – but a possibility)
Price forecast for ETH and BTC
BTC prices are slightly higher than over the weekend, although they are still range-bound. Since much of the world has been on vacation for the past week, there has been hardly any volatility. BTC was worth $16,696 at the time this article was being written
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Similar circumstances exist for Ethereum, which has only risen 1.3% for the day. As a result, according to Coincheck, ETH was being traded for $1,216.
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