In November 2021, Bitcoin hit an all-time high of about $69k, but since then, both the coin and the wider crypto market have lost those gains.
Despite the ongoing bearish sentiments, historical data indicated that Bitcoin could be in for another rally in 2023.
According to commodity strategist Mike McGlone, the dominant coin might be approaching a Bottom with chances of repeating the patterns of 2019’s bull run.
In a video podcast hosted by popular crypto enthusiast Scott Melker, McGlone said that the biggest rallies often occur in the bear market.
The analyst compared BTC’s recent rally into the $20,000 range to its bottom formation in 2018 at the $5,000 price level.
“Back then the Fed already started easing and we held the bottom and broke out higher and then we had that issue in 2019,” he said.
The NASDAQ is likely to fall below its 200-week moving average, which, according to McGlone, is another reason why Bitcoin’s rally might not last. The performance of Bitcoin over the past year has been closely correlated with that of the NASDAQ.
This is the NASDAQ. The NASDAQ is at its 200-week moving average. The 200-week moving average in the history of the NASDAQ can be calculated we only broke through that level three times. And every single time the Fed was easing. The last good example was 2008. Fed was easing aggressively.
“Right now they’re tightening aggressively, so you look at that and you can’t be too excited about any markets. Give it some time. Big picture, yes, really bullish Bitcoin,” McGlone added.
It is important to note that recent Glassnode data lends further credence to the notion that the price of Bitcoin has already formed a bottom in the current cycle.
Bitcoin Has Already Reached Its Bottom For This Cycle
The report showed that during the 2018–2019 bear cycle, Bitcoin fell 386 days below its 200-day moving average before making a comeback.
Similar to how it spent 381 days in the last cycle below the well-known market trend indicator, the asset has now broken above it, suggesting a turnaround.
By press time, Bitcoin was trading at $21,155. On the daily chart, the flagship cryptocurrency has corrected by 0.90%.