Bitcoin Is Playing Out The Same Cycle Again On A Bigger Scale

bitcoinistPublished on 2026-04-14Last updated on 2026-04-14

Abstract

Bitcoin's recent rebound has failed to resolve debates among analysts regarding the current market phase. Technical analysis suggests Bitcoin is repeating the same cyclical pattern observed in previous bear markets, albeit on a larger scale with slower momentum, deeper institutional involvement, and reduced volatility. The pattern typically includes a parabolic advance, distribution, a sharp decline, a deceptive recovery, and eventual capitulation. Analysts argue the downtrend remains incomplete, citing on-chain metrics like Net Unrealized Profit/Loss (NUPL) and long-term holder stress, which indicate that investor pain and negative sentiment have not yet reached extremes typical of cycle bottoms. Historical data shows prior bear markets resulted in drawdowns of 77-84% and formed bottoms roughly a year after all-time highs. With Bitcoin currently down 40.8% from its October 2025 peak of $126,080, further downside is possible. Projections based on past cycles suggest a potential bottom may occur in Q3 or Q4 2026.

Bitcoin’s latest rebound has not done much to settle the argument among crypto analysts over where this cycle really is right now.

A technical analysis posted on X claims the market is once again tracing the same structure seen in prior bear phases, only this time with a slower tempo, deeper institutional involvement, and a more controlled trading environment. However, the outlook of this analysis is that the downtrend is still not complete.

Familiar Bitcoin Script Is Showing Up Again

The concept of the analysis is that the Bitcoin price keeps moving through the same emotional and structural framework from one cycle to the next. In that framework, the Bitcoin price first pushes into a parabolic advance, then enters distribution, suffers a violent break lower, stages a misleading recovery, and eventually grinds into a final capitulation.

That is the same pattern that appeared in 2018 and again in 2022, and in this reading, 2026 is now occupying the same late-stage position, only on a larger scale and with lower volatility.

That timing element is important, and it supports an extended bearish case in the months to come. History shows prior cycle bottoms formed a year after the all-time high, not immediately after the first large drawdown. By that logic, the Bitcoin price may still be too early in the process for a lasting bottom, especially if this cycle peak is treated as the October 2025 high at $126,080.

Where Does Bitcoin Go From Here?

The technical structure is only part of the case. Technical analysis from a crypto analyst known as BLADE on the social media platform X leaned on on-chain signals, particularly long-term holder stress and NUPL, to argue that the reset is incomplete.

Glassnode’s Net Unrealized Profit/Loss measures whether the network is sitting on aggregate paper profits or losses. The farther it moves from zero, the closer the market tends to get to major extremes. What this means is that true cycle lows usually arrive when investors are much deeper in pain, and sentiment has turned miserable.

CryptoQuant said on April 1 that Bitcoin spot demand is still in deep contraction despite growing institutional buying. This means that the market’s internal strength has not fully caught up with headline demand from large allocators, and the Bitcoin price might continue to struggle until it does.

There’s also an interesting template that Bitcoin might follow based on its previous two major bear markets. The 2017 bull run peaked and gave way to a bear market that ultimately caused an approximately 84% drawdown from top to bottom. The 2021 cycle followed a similar script, with Bitcoin’s top-to-bottom decline ending at about 77%.

At current prices around $74,680, Bitcoin is trading 40.8% below that October top, which means there could be more downside ahead. Furthermore, previous bear market bottoms arrived about 360 to 370 days after the prior cycle’s peak. This sequence would point to a potential cycle bottom somewhere in Q3 or Q4 2026.

BTC trading at $74,576 on the 1D chart | Source: BTCUSDT on Tradingview.com

Trending Cryptos

Related Questions

QAccording to the technical analysis, what are the key characteristics of the current Bitcoin cycle compared to previous ones?

AThe current cycle is characterized by the same structural framework as prior bear phases, but with a slower tempo, deeper institutional involvement, and a more controlled trading environment.

QWhat is the role of Glassnode's Net Unrealized Profit/Loss (NUPL) indicator in this analysis?

AThe NUPL measures whether the network is sitting on aggregate paper profits or losses. The analysis uses it to argue that a true cycle low has not been reached, as it suggests investors are not yet in deep enough pain and sentiment has not turned miserable enough.

QBased on historical patterns, when might the next potential Bitcoin cycle bottom occur?

ABased on the timing of prior cycles, where bottoms formed about 360 to 370 days after the all-time high, the analysis points to a potential cycle bottom somewhere in Q3 or Q4 of 2026.

QWhat does the article suggest about the relationship between institutional buying and the market's internal strength?

AThe article states that despite growing institutional buying, spot demand is still in deep contraction. This means the market's internal strength has not fully caught up with headline demand from large allocators, suggesting the price may continue to struggle.

QHow does the current price drawdown from the all-time high compare to the drawdowns in the previous two major bear markets?

AThe current drawdown is 40.8% from the all-time high. This is significantly less severe than the previous two bear markets, which saw drawdowns of approximately 84% (2017 cycle) and 77% (2021 cycle), implying there could be more downside ahead.

Related Reads

The Changing Landscape: What Are Crypto VCs Experiencing?

Title: The Shifting Landscape of Crypto Venture Capital The era of dedicated crypto venture capital funds is undergoing a significant transformation. Once essential for navigating the sector's complexity and high risk, these specialized funds are now facing an identity crisis as the market matures. This shift mirrors historical patterns in other specialized investment classes like cleantech and SPACs, where initial information advantages dissipate as technologies become mainstream and integrated into existing industry frameworks. The article argues that crypto is reaching a critical inflection point, transitioning from a "building phase" to an "integration phase." Major players like Stripe, BlackRock, and Visa now engage with crypto not for its novel mechanics but as a foundational financial infrastructure. Their needs—regulatory compliance, banking partnerships, distribution channels—align with traditional fintech, a domain easily understood by large, generalist funds like Sequoia and Founders Fund. This evolution creates a "barbell effect" within the VC landscape. On one end are massive, diversified platforms that can incorporate crypto as one vertical among many. On the other are small, nimble funds focused on niche, experimental projects. The middle ground—medium-sized dedicated crypto funds—is being squeezed out. Their typical fund size makes it impossible to generate sufficient returns solely from early-stage crypto bets, yet they cannot compete with giants for later-stage deals. Consequently, leading crypto-native firms like Paradigm and Framework Ventures are expanding into AI, robotics, and other sectors, driven partly by LP pressure for better returns amid a broader VC DPI crisis. Others, like Dragonfly and a16z, have narrowed their crypto focus predominantly to financial infrastructure like stablecoins, reframing the sector's core narrative. For crypto entrepreneurs, this consolidation presents challenges. While generalist funds offer larger checks and broader resources, crypto projects now compete fiercely with AI for attention and capital within these firms. Furthermore, the long-term, non-commercial foundational work that built the ecosystem—funded by dedicated crypto VCs—is less likely to attract generalist capital focused on direct returns. The conclusion is that "crypto investor" as a standalone category is becoming obsolete, akin to "internet investor." Crypto is becoming a baseline infrastructure layer. The future will see a barbell structure: large-scale growth financing handled by generalist funds, while pioneering, speculative projects are funded by small, specialized vehicles. The dedicated crypto funds of the 2017-2021 boom, which incubated core infrastructure, are giving way to this new, bifurcated reality.

Foresight News2m ago

The Changing Landscape: What Are Crypto VCs Experiencing?

Foresight News2m ago

As Consensus Accelerates, What Are Young Investors Betting On?

Title: As Consensus Forms Faster, What Are Young Investors Betting On? In the rapid evolution of tech investment, a new generation of young investors is navigating a landscape where AI, robotics, commercial aerospace, and quantum computing are advancing simultaneously. Traditional investment logic based on financial models is giving way to a need for deep technical understanding and the ability to act before industry consensus forms. An analysis of trends from the "WAIC FUTURE TECH" list of young investment leaders reveals key shifts in focus. The first major trend is the movement of AI from the digital screen into the physical world. Investment is shifting from large language models and chatbots towards embodied AI, robotics, AI hardware, and edge computing. While demonstrations generate excitement, the real challenge lies in achieving scalable, reliable, and cost-effective delivery in complex real-world environments like factories and logistics. Success depends not just on algorithms but on the integration of sensors, actuators, and control systems. Second, the competitive focus for large models is moving beyond raw capability toward building an "intelligence flywheel." The goal is to create self-reinforcing systems where user interaction generates data, improving the model, which in turn enhances the user experience and attracts more engagement. Companies that successfully embed AI into workflows to create these closed-loop systems can build lasting value that isn't easily erased by the next model upgrade. Third, facing a potential bottleneck in high-quality human-generated data, investors are looking at new underlying technologies. Reinforcement learning and self-play, as demonstrated by AlphaGo Zero, offer paths for AI to generate its own experience. Scientific foundation models, which aim to build general AI capabilities for fields like life sciences and materials discovery, represent a non-consensus direction that could unlock new frontiers of knowledge and data. Finally, in deep-tech areas like quantum computing, commercial aerospace, and space-based infrastructure, patient capital is essential. These fields have long, uncertain development and validation cycles involving complex engineering, supply chains, and regulations. Investment here requires a long-term view, focusing on foundational team capabilities and the eventual emergence of market demand, even if commercial returns are distant. Collectively, these trends illustrate how young investors are adapting to a new era. They are learning to make earlier, technically-informed judgments, balance hype with real-world viability, and provide the patient capital needed to build the deep-tech foundations of the future.

marsbit30m ago

As Consensus Accelerates, What Are Young Investors Betting On?

marsbit30m ago

Can Japan Buy Growth with AI? Will the Bond Market Believe It?

Japan's cabinet has introduced the 2026 Basic Policy on Economic and Fiscal Management and Reform, shifting its primary fiscal target. The new framework moves away from the traditional annual primary balance goal and instead prioritizes a stable reduction of the debt-to-GDP ratio. This change is tied to a strategy of increased "responsible proactive fiscal" spending, aiming to boost long-term growth through investments in strategic sectors like AI, semiconductors, energy, and robotics. The government estimates total public and private investment in 62 key technologies could exceed 370 trillion yen by 2040. The market reaction has been mixed and cautious. While equity markets may respond to policy signals, bond markets are focused on fiscal credibility. Concerns center on whether the weakening of the clear primary balance anchor could lead to looser fiscal discipline. If investors doubt that these strategic investments will generate sufficient productivity gains, tax revenue, and nominal growth to outpace rising interest costs, they may demand higher yields on Japanese Government Bonds (JGBs). Recent volatility in the yen and JGB yields, with the 10-year yield briefly reaching 2.9%, reflects this skepticism. The success of this new framework hinges on two factors: whether Japan can achieve a nominal growth rate consistently higher than its long-term interest rates, and whether future budgets demonstrate disciplined control over bond issuance. The government's narrative is that strategic investment is essential to break Japan's cycle of low growth, aging, and labor shortages. However, the bond market will continuously assess the credibility of this plan, pricing the risk that it may represent fiscal expansion rather than a viable growth strategy.

marsbit1h ago

Can Japan Buy Growth with AI? Will the Bond Market Believe It?

marsbit1h ago

Trading

Spot

Hot Articles

What is $BITCOIN

DIGITAL GOLD ($BITCOIN): A Comprehensive Analysis Introduction to DIGITAL GOLD ($BITCOIN) DIGITAL GOLD ($BITCOIN) is a blockchain-based project operating on the Solana network, which aims to combine the characteristics of traditional precious metals with the innovation of decentralized technologies. While it shares a name with Bitcoin, often referred to as “digital gold” due to its perception as a store of value, DIGITAL GOLD is a separate token designed to create a unique ecosystem within the Web3 landscape. Its goal is to position itself as a viable alternative digital asset, although specifics regarding its applications and functionalities are still developing. What is DIGITAL GOLD ($BITCOIN)? DIGITAL GOLD ($BITCOIN) is a cryptocurrency token explicitly designed for use on the Solana blockchain. In contrast to Bitcoin, which provides a widely recognized value storage role, this token appears to focus on broader applications and characteristics. Notable aspects include: Blockchain Infrastructure: The token is built on the Solana blockchain, known for its capacity to handle high-speed and low-cost transactions. Supply Dynamics: DIGITAL GOLD has a maximum supply capped at 100 quadrillion tokens (100P $BITCOIN), although details regarding its circulating supply are currently undisclosed. Utility: While precise functionalities are not explicitly outlined, there are indications that the token could be utilized for various applications, potentially involving decentralized applications (dApps) or asset tokenization strategies. Who is the Creator of DIGITAL GOLD ($BITCOIN)? At present, the identity of the creators and development team behind DIGITAL GOLD ($BITCOIN) remains unknown. This situation is typical among many innovative projects within the blockchain space, particularly those aligning with decentralized finance and meme coin phenomena. While such anonymity may foster a community-driven culture, it intensifies concerns about governance and accountability. Who are the Investors of DIGITAL GOLD ($BITCOIN)? The available information indicates that DIGITAL GOLD ($BITCOIN) does not have any known institutional backers or prominent venture capital investments. The project seems to operate on a peer-to-peer model focused on community support and adoption rather than traditional funding routes. Its activity and liquidity are primarily situated on decentralized exchanges (DEXs), such as PumpSwap, rather than established centralized trading platforms, further highlighting its grassroots approach. How DIGITAL GOLD ($BITCOIN) Works The operational mechanics of DIGITAL GOLD ($BITCOIN) can be elaborated on based on its blockchain design and network attributes: Consensus Mechanism: By leveraging Solana’s unique proof-of-history (PoH) combined with a proof-of-stake (PoS) model, the project ensures efficient transaction validation contributing to the network's high performance. Tokenomics: While specific deflationary mechanisms have not been extensively detailed, the vast maximum token supply implies that it may cater to microtransactions or niche use cases that are still to be defined. Interoperability: There exists the potential for integration with Solana’s broader ecosystem, including various decentralized finance (DeFi) platforms. However, the details regarding specific integrations remain unspecified. Timeline of Key Events Here is a timeline that highlights significant milestones concerning DIGITAL GOLD ($BITCOIN): 2023: The initial deployment of the token occurs on the Solana blockchain, marked by its contract address. 2024: DIGITAL GOLD gains visibility as it becomes available for trading on decentralized exchanges like PumpSwap, allowing users to trade it against SOL. 2025: The project witnesses sporadic trading activity and potential interest in community-led engagements, although no noteworthy partnerships or technical advancements have been documented as of yet. Critical Analysis Strengths Scalability: The underlying Solana infrastructure supports high transaction volumes, which could enhance the utility of $BITCOIN in various transaction scenarios. Accessibility: The potential low trading price per token could attract retail investors, facilitating wider participation due to fractional ownership opportunities. Risks Lack of Transparency: The absence of publicly known backers, developers, or an audit process may yield skepticism regarding the project's sustainability and trustworthiness. Market Volatility: The trading activity is heavily reliant on speculative behavior, which can result in significant price volatility and uncertainty for investors. Conclusion DIGITAL GOLD ($BITCOIN) emerges as an intriguing yet ambiguous project within the rapidly evolving Solana ecosystem. While it attempts to leverage the “digital gold” narrative, its departure from Bitcoin's established role as a store of value underscores the need for a clearer differentiation of its intended utility and governance structure. Future acceptance and adoption will likely depend on addressing the current opacity and defining its operational and economic strategies more explicitly. Note: This report encompasses synthesised information available as of October 2023, and developments may have transpired beyond the research period.

972 Total ViewsPublished 2025.05.13Updated 2025.05.13

What is $BITCOIN

Discussions

Welcome to the HTX Community. Here, you can stay informed about the latest platform developments and gain access to professional market insights. Users' opinions on the price of BTC (BTC) are presented below.

活动图片