Fidelity Research: Bitcoin price is accumulating strength for the next step in the "acceleration phase"

PANews reported on April 1 that according to Cointelegraph, a recent report by Fidelity Digital Assets questioned whether the price of Bitcoin has experienced its cyclical "peak and fallback", or whether Bitcoin is on the verge of another "acceleration phase". According to Fidelity analyst Zack Wainwright, the acceleration phase of Bitcoin is characterized by “high volatility and high yield”, similar to the price trend when Bitcoin broke through $20,000 in December 2020. Although Bitcoin’s return this year reflects a loss of 11.44%, and the asset has fallen nearly 25% from its all-time high, Wainwright said that performance after the recent acceleration phase is consistent with Bitcoin’s average retracement compared to previous market cycles.

Wainwright believes that Bitcoin is still in the acceleration phase, but is gradually approaching the end of the cycle, because March 3 is the 232nd day of the cycle. Previous peaks will last a little longer before the correction period arrives. "The acceleration phases in 2010-2011, 2015 and 2017 peaked on days 244, 261 and 280, respectively, indicating that the acceleration phases in each cycle are slightly extended," Wainwright noted.

Recently, many international and US listed companies have purchased Bitcoin or expressed their intention to buy it. Although it is difficult to determine the impact of institutional investors on the price of Bitcoin purchases, Wainwright said that an indicator worth paying attention to is the number of days when Bitcoin hits a new high in the 60-day period. "Bitcoin usually experiences two big gains in previous acceleration phases, with the first gain in this cycle happening after the election. If a new all-time high is approaching, its starting point will be close to $110,000," Wainwright said.