Joao Wedson, a cryptocurrency market analyst, recently examined Bitcoin’s current valuation through the lens of its historical price data and suggested that the market might still be undergoing a phase of cyclical adjustment.
Wedson highlighted that Bitcoin has traded above today’s price level for roughly 340 days throughout its entire history. This figure serves as a unique historical dominance indicator, reflecting not just price momentum but how persistently the current valuation compares to past performance.
The analyst pointed out that in previous cycles, significant bear market lows usually appear when this count nears between 700 and 800 days. He emphasized that since we are well below this range now, it implies Bitcoin’s present price hasn’t yet exceeded much of its historical timeline and remains distant from such critical thresholds.
Based on these observations, Wedson inferred that Bitcoin’s ongoing cyclical correction may still be unfolding. Should past trends hold true once again, there remains a chance for Bitcoin to revisit prices beneath its all-time high near $69,000 recorded in 2021.
In closing his analysis, he remarked: “This aligns completely with how market cycles operate. It might simply require more time.”
*Please note this is not financial advice.