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On-chain analyst affirms Bitcoin is in the “Last Cycle” as BTC price attempts to break $42,000

  • Bitcoin price could see a drawdown as the correlation between BTC and equities remains high, say analysts,  
  • Willy Woo believes signs of his last cycle thesis are playing out; this implies the end of relatively short bull and bear markets.
  • Over $20 million in Bitcoin long positions were liquidated as BTC price failed to break past $42,000. 

Bitcoin price failed to sustain above $42,000, and $20 million in long positions were liquidated, fueling investors' bearish narrative. Analysts argue that there are signs of Bitcoin price cycles drawing to an end and a lack of a capitulation event implies a Bitcoin supercycle. 

Also read: Gold Price Forecast: XAUUSD could soon recover its shine

Bitcoin price enters the last cycle fails to break past $42,000

Bitcoin price failed to break past the key $42,000 price level, triggering over $20 million in liquidations of long positions across exchanges on March 21, 2022. Analysts note that Bitcoin price met resistance at $42,000 as selling pressure on BTC increased. 

With Bitcoin price dropping below $42,000, massive liquidations across exchanges fueled a bearish narrative among investors. 

A leading crypto analyst and trader, Willy Woo, observed the first signs of his thesis titled "The Last Cycle." Woo put forward a thesis that after three relatively short Bitcoin bull and bear markets that transpired since 2019, the asset is prepared for a "supercycle."

In the absence of a capitulation event, like halving, that fueled the bull and bear markets in the last three cycles, it is likely that Bitcoin broke loose from four-year cycles. 

The Bitcoin supercycle theory suggests the start of a new cycle in the asset, according to on-chain analyst @therationalroot. 

Bitcoin Super Cycle

Bitcoin Super Cycle 

Analysts have evaluated the Bitcoin price trend and predicted a bullish breakout with a limited upside. FXStreet analysts note that Bitcoin price is inside the cloud on March 21, 2022, a seasonal date for the asset. Historically, big moves in Bitcoin price occur on March 21 each year. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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