Crypto analyst Justin Bennett, Bitcoin $58,156He warns that the traditional four-year cycle of the cryptocurrency could be coming to an end. Bennett notes that Bitcoin’s cycles are correlated with macroeconomic performance. Since its inception, Bitcoin has reportedly followed three- to four-year cycles: one to two years of bear markets, followed by one to two years of bull markets. However, Bennett notes that this cycle will not continue indefinitely.
Macroeconomic Impacts
Bennett points out that Bitcoin’s cycles are linked to macroeconomic conditions. He emphasizes that Bitcoin was created during the same period as the short-term business cycle expansion and has never existed outside of this cycle. Bennett notes that if the business cycle contracts, traditional four-year cycles could come to an end, and that this could herald a new era for crypto.
Relationship with Economic Indicators
Bennett believes that Bitcoin’s price movements have historically followed important economic indicators, particularly metrics like the Purchasing Managers Index (PMI), which he says are correlated with the overall health of the economy. He suggests that these indicators could also play a role in Bitcoin’s future cycles.
Short Term Monitored Levels
Bennett is closely watching to see if Bitcoin can turn the $58,000 resistance level into support in the short term. Bennett predicts that Bitcoin could ease above $53,000, and states that if it passes $58,000, it could potentially reach $60,000. However, he adds that if it falls below $55,500, these predictions will be invalid.
Bitcoin is trading at $57,702 at the time of writing, down more than 5% in the last two weeks. This volatility suggests that Bitcoin may be affected by current economic conditions. Investors continue to closely monitor market trends and macroeconomic indicators.
Analysts have made various comments about the possibility of Bitcoin’s four-year cycle changing. According to Bennett’s analysis, Bitcoin’s connection with economic cycles could lead to a different price movement in the future. This situation indicates that investors should review their Bitcoin strategies. Bitcoin’s future may be shaped by macroeconomic changes, and these changes may create new opportunities and risks in the cryptocurrency market.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
