Bitcoin, unlike the rising altcoins led by it, has received a warning of a downturn from the venture capital firm IOSG Ventures. According to research by IOSG Ventures, the cryptocurrency market is approaching the middle of a bull cycle and has entered the second half of it. If the market follows historical patterns, this bull market could encounter at least 10 negative corrections (more than 5%) before reaching the peak of the cycle.
The report published by IOSG Ventures states that market participants have been in a bull market for a year and that the cryptocurrency market is approaching the midpoint of the current bull cycle. This situation indicates that we have entered the second half of the cycle. The research reveals that Bitcoin’s 50-day moving average has crossed above the 200-day moving average for the second time in this cycle, which is a positive signal. This technical indicator opens the way for positive returns in the medium term with a probability of over 80%.
The report emphasizes that the current Bitcoin bull cycle is following a much smoother path compared to previous cycles and if it continues to follow historical patterns, at least 10 negative corrections (more than 5%) can be expected before reaching the peak of the cycle.
The research also mentions that historically, Bitcoin has provided short-term gains before and after block reward halvings and often exhibited significant positive performance. Although block reward halvings are seen as potential forces driving market cycles, the firm adds that the impact of these events could be coincidental due to their alignment with global macro cycles.