Bitcoin and Its Bullish Phases

Feb 22, 2023

Is the bull market upon us?

This article echoes the one addressing the topic of BTC and available UTXO, which can be found here.

The previous article aimed to highlight that the UTXO indicated that the price of Bitcoin was in a bullish period.

Today’s article seeks to demonstrate that Bitcoin experiences repeating bullish cycles, although, as is customary to say, past performance is not indicative of future results.

This article is likely to please enthusiasts of technical analysis as it relies solely on the Bitcoin price chart.

Furthermore, this technical analysis exclusively focuses on yearly candlesticks.


Figure 1: Chandelles annualisées du Bitcoin

At first glance, it is easy to recognize the three red candlesticks indicating the decline in the price of Bitcoin. The subsequent green candlesticks are also easily identifiable.

bitcoin évolution en log

Figure 2: Bitcoin Price Evolution in USD (Log Scale)

Figure 2 (log scale) highlights a significant regularity, up until today, in the behavior of Bitcoin price.
It is evident that after each annual red candlestick indicating a price decline, strong increases follow. And by “strong increases,” it means that the price advancements of Bitcoin are unmatched in the traditional finance world.

We have the following price advancements:

Period Price progression Highest price reached
(over the period)
2011-2013 52 287.39% $1 163
2014-2017 7 051.27% $19 666
2018-2021 3 450.50% $69 000
2022-…. 63.25% (running) $25 270 (running)

What can be expected?

According to a purely chartist analysis, it would be reasonable to anticipate a continuation of the bullish trend, despite macroeconomic uncertainties, while acknowledging that the future is inherently uncertain.

Furthermore, based on chartist analysis, it could be considered reasonable to accumulate Bitcoin in order to potentially benefit from a substantial increase in its price, if the trend were to confirm.

If we combine this purely technical analysis (study of the Bitcoin price chart over time) with the analysis of UTXO  (ici), it appears that the time is ripe for a new upward movement in the Bitcoin price.

Note: Il est important de se rappeler que le trading est une activité risquée et qu’il est important de se rappeler que les pertes sont possibles. Il est donc important de bien comprendre les risques associés au trading et de ne pas investir de l’argent qu’on ne peut se permettre de perdre. Il est aussi important de se rappeler que les performances passées ne garantissent pas les résultats futurs. Il est donc important d’avoir une stratégie de gestion de risque appropriée en place et de ne pas se fier uniquement à un seul indicateur pour prendre des décisions d’investissement.

Crypto-currency investment manual for institutional investors (Canadian market)

Table of contents: 1. Introduction1.1 Purpose of the handbook1.2 Canadian Market Context and Opportunities2. Understanding Cryptocurrencies2.1 What is a cryptocurrency?2.2 Major cryptocurrencies2.3 Blockchain technology3. Canadian Regulatory Framework3.1...

TradFi, DeFi & Flash Loan

Table of contents:   I. Comparison between Traditional Finance (TradFi) and Decentralized Finance (DeFi) A. Definition and Overview of TradFi1. History and Development of Traditional Finance2. Roles and Responsibilities of Traditional Financial Institutions3....

Impact of including Bitcoin in a balanced portfolio

Preamble While it is difficult to provide a definitive answer without knowing the exact details of investments made in each portfolio, in general, stocks tend to have higher long-term returns but with higher volatility, while bonds tend to have lower returns but with...

Advent of DeFi, where is TradFi heading?

There are sometimes revolutions in human activity that do not bear their names. And this seems to be happening with the advent of the complex, nebulous, and sometimes risky world of cryptocurrencies and blockchains. Yes, but here's the thing, cryptocurrencies and...

Pattern Trading

Chart pattern trading is a method of trading based on the analysis of graphical patterns that asset prices can form on a chart. This approach involves identifying recurring patterns in the price movements of an asset and making trading decisions based on these...

Derivatives and Bitcoin

Market derivatives data as a short-term trading tool Market derivatives data can be used as a tool for short-term trading. The actions in the market on February 15th (yesterday) provide a good illustration of what happens when buyers and sellers confront each other....

Bitcoin & UTXO

What is UTXO ? La technologie blockchain de Bitcoin repose sur un concept clé appelé UTXO, ou "unspent transaction output" en anglais, qui est essentiel pour la sélection et l'association des entrées et des sorties de transactions pour effectuer des paiements. Les...

Distinction among Canadian investors

Different Categories of Investors In Canada, securities regulations establish a distinction between accredited investors and retail investors, based on their income, net worth, and investment experience. Here is a comparative table outlining the differences between...

Sharpe Ratio

Bitcoin vs. S&P500: The Sharpe Ratio Investing in financial assets is a crucial decision for any investor, and choosing the right assets can make a significant difference in the final returns. The Sharpe ratio is an effective tool for evaluating the performance of...

Stablecoin Correlation with Bitcoin Price

No volume, no business As a financial journalist specializing in investment strategies, it is important to analyze the correlation between stablecoins and the price of Bitcoin. Stablecoins are a type of cryptocurrency that is designed to maintain a stable value, often...