Bitcoin's (BTC) historic bull cycle is still intact

Despite widespread investor fear over the current correction, which may only be a temporary “shakeout” ahead of the next leg up

Crypto market analysts believe that Bitcoin's historic bull cycle is still intact, despite widespread investor fear over the current correction, which may only be a temporary "shakeout" ahead of the next leg up.

Bitcoin's (BTC) price is currently down 22% from its all-time high of over $109,000 recorded on Jan. 20, on the day of US President Donald Trump's inauguration, according to CoinGecko.

Despite investor sentiment dropping into "Extreme Fear" multiple times, historic chart patterns suggest that this may just be a price shakeout — a sudden price drop caused by multiple investors exiting their positions, preceded by a sudden price recovery.

"Several key technical indicators have turned bearish, leading to speculation that the bull cycle may be ending prematurely," Bitfinex analysts told Chainwire.

"However, the launch of the US spot Bitcoin exchange-traded funds (ETFs), which temporarily surpassed $125 billion in cumulative holdings, along with the growing institutional crypto investments make it clear that the conventional cycle ceases to exist."

In an optimistic sign for price action, Bitcoin staged a daily close above $84,000 on March 15, for the first time in over a week since March 8, according to TradingView data.

However, due to Bitcoin's correlation with traditional financial markets, BTC may only find a bottom along with equity markets, particularly the S&P 500, said Bitfinex analysts.

"Trade wars have already been priced in, to some extent, but prolonged economic strain could weigh on sentiment."

Bitcoin halving and four-year cycle still crucial for price action: Nexo analyst

Despite fears over a disrupted Bitcoin bull market, the four-year cycle, along with the Bitcoin halving event, remain crucial for Bitcoin's price action, according to Iliya Kalchev, dispatch analyst at Nexo digital asset investment platform.

"Bitcoin's four-year compound annual growth rate (CAGR) has declined to a record low of 8%, posing questions about whether its traditional four-year cycle remains valid," Kalchev said.

The 2024 Bitcoin halving reduced the Bitcoin network's block reward to 3.125 BTC per block.

Bitcoin price is up over 31% since the last halving occurred on April 20, 2024, which was coined the "most bullish" setup for Bitcoin price, partly because of the growing institutional interest in the world's first cryptocurrency.