In a recent development, crypto-exposure-through-grayscale-bitcoin-trust/” rel=”nofollow”>Leading investment bank Morgan Stanley has intervened about when bitcoin-traders-can-expect-in-bear-market/” rel=”nofollow”>persistent bitcoin bear market it is likely to end. Interestingly, they share similar views with analysts who have made predictions in the past.
bitcoin Halving Is a Major Factor
in a article published by the investment bank, Morgan Stanley highlighted bitcoin-price-about-to-hit-30k-today/” rel=”nofollow”>bitcoin importance as a leading crypto and how bitcoin-50-drop-possible-ahead-of-halving/” rel=”nofollow”>bitcoin Halvingwhich will take place in April 2024, could affect its price and, by extension, other crypto tokens.
The bitcoin halving is a deflationary measure that occurs every four years, during which miners’ rewards are “halved”, thus creating scarcity. According to the bank, this event could trigger a bull run as it has done in the past.
The article further points out how there have been bull runs in the past after the three halving events that occurred and how the bull run lasted 12 to 18 months afterwards.
Morgan Stanley’s prediction echoes that of several crypto analysts who have predicted that the bitcoin halving could spark the next bull run. Specifically, Delphi Digital co-founder Kevin Kell, while highlighting metrics that showed the next bull run was near, noted that bitcoin has reached a new all-time high (ATH) seven months after the last two halvings occurred.
Understand the four phases of cryptocurrencies
While trying to avoid giving a definite time on when to invest before the next bull run, Morgan Stanley noted the importance of learning about the “four phases of cryptocurrency prices” so you can be convinced of the right time. to invest. These four phases It is said that they correspond approximately to the four seasons of the year.
The first phase is the “Summer,” when bitcoin experiences the most gains, which occurs after the halving. It is said that the running of the bulls begins with the event and continues when crypto-analysts-bitcoin-price-real-spot-etf/” rel=”nofollow”>The price of bitcoin reaches its previous peak. The next is the “crash”, when the price “exceeds the old high”. This is the period in which the bull market runs its full course after reaching a new high.
After “autumn” comes “winter” which is when the bear market emerges, as this is the period when investors lock in their profits, resulting in a massive sell-off. This usually occurs between the “new peak and the next low.” Historically, there have been three winters, each lasting about 13 months.
The ‘spring’ is the last phase of the cycle and the one that potentially starts the next bull run (another summer). This is the period “preceding each halving,” when the price of bitcoin “typically recovers from the lowest point of the cycle, but bitcoin-active-addresses-decline-investors-interest/” rel=”nofollow”>investor interest “it tends to be weak.”
By understanding these phases, cryptocurrency investors could be well prepared to take advantage of the next bull run and make the biggest profits.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2023/10/When-will-the-Bitcoin-bear-market-end-The-American-megabank" alt="Tradingview.com bitcoin Price Chart (US Megabank Morgan Stanley Cryptocurrency Bear Market)” width=”2670″ height=”1746″ loading=”lazy”/>
btc continues recovery as sentiment recovers | Source: BTCUSD on Tradingview.com
Featured image from Forbes, chart from Tradingview.com
