Now that the Bitcoin price charts have been a source of great information over the past six years, we can start to see several patterns emerge. Just like any other asset, currency or value that can be charted, Bitcoin is going through a period of cycles during which it hits a low before prices start trending upwards again.
The 12-ish Week Cycle
Bitcoin prices go through a cycle the lasts- on average- between 12 weeks and 14.5 weeks. Every cycle shows a similar patterns, during which we go from one low to another low 12-14 weeks later, before prices start picking up again.. What may the most intriguing part of this Bitcoin price cycle is the fact that the first and last low do not necessarily correlate.
If you take a look at the Bitcoin price chart of April 2013 until today, you will see the pattern I’m talking about. Between April 1st, 2013 and July 1st, 2013, the Bitcoin price went from one low to another, despite two small uptrends in early April and the end of May. But eventually, once 84 days [or 12 weeks] had passed, we found ourselves at another new low before the next uptrend began.
That same pattern repeated itself from July 1st, 2013 until September 30th, 2013, during which it took 91 days [13 weeks] to go from one low to the next low. There was a nice uptrend between the end of July and the beginning of September, after which the charts flattened again, settling at a new low on September 30th.
These cycles have been repeating themselves between September 30th and December 16th of 2013 [77 days or 11 weeks]; December 16th 2013 & February 26th 2014 [70 days or 10 weeks] and February 26th & April 7th [42 days or 6 weeks – an unusual short duration]. As you would come to expect, a short duration between lows would be followed by an extended period before the cycle started again.
And that period lasted from April 7th, 2014 until September 29th, 2014 [175 days or 25 weeks]. On September 29th, the most recently completed cycle began, which lasted until January 12th, 2015 [105 days or 15 weeks]. Fast forward until today – 10 weeks since the previous Bitcoin price low – and you can start guesstimating what the Bitcoin price will do over the next few weeks.
Assuming this cycle will keep repeating itself, it looks like the Bitcoin price [in USD$ is poised to reach a new height [as high as US$400] before sliding downwards again to set the cycle’s endpoint low price. How low this new endpoint low will be is hard to predict, but we may very well be looking at a US$325-US$340 mark when this cycle ends.