PANews reported on April 1 that according to Cointelegraph, a recent report from Fidelity Digital Assets questioned whether the price of Bitcoin has experienced its cyclical "peak and fall" or whether Bitcoin is on the verge of another "acceleration phase". According to Fidelity analyst Zack Wainwright, Bitcoin's acceleration phase is characterized by "high volatility and high returns", similar to the price trend when Bitcoin broke through $20,000 in December 2020. Although Bitcoin's return rate this year reflects a loss of 11.44%, and the asset has fallen nearly 25% from its all-time high, Wainwright said that compared with previous market cycles, the performance after the recent acceleration phase is consistent with Bitcoin's average retracement.
Wainwright believes that Bitcoin is still in the acceleration phase, but is gradually approaching the end of the cycle, as March 3 is the 232nd day of the cycle. Previous peaks lasted a little longer before the correction period arrived. Wainwright pointed out: "The acceleration phases in 2010-2011, 2015, and 2017 peaked at 244 days, 261 days, and 280 days, respectively, indicating that the acceleration phase of each cycle will be slightly extended."
Recently, many international and US listed companies have bought Bitcoin or expressed their intention to buy it. Although it is difficult to determine the impact of institutional investors' purchases of Bitcoin on the price of Bitcoin, Wainwright said that an indicator worth paying attention to is the number of days in which Bitcoin hits a new high in a consecutive 60-day period. Wainwright said: "In previous acceleration phases, Bitcoin usually experiences two major increases, and the first increase in this cycle occurred after the election. If a new all-time high is coming, its starting point will be close to $110,000."
