Bitcoin's Six-Month Lull: Experts Weigh in on Recovery Timeline

Bitcoin's price has been on a downward trend since February, with many investors left wondering how long it will take for the cryptocurrency to recover.

According to Glassnode data, losses could dominate markets for six months before a meaningful recovery. This is based on historical drawdowns that indicate potential strong rebounds after prolonged declines.

One indicator used by Glassnode is the Realized Profit/Loss Ratio (90D-SMA), which suggests that profits dominate when the ratio stays above 1.0 and losses dominate when it falls below 1.0. The current data shows that the ratio has dropped below 1 for the first time since 2022, with a historical precedent of lasting around six months.

Other analysts have suggested that buying during periods of extreme fear can lead to significant gains when the market recovers. A statistic from the account 'Priced in ₿itcoin' suggests that buying at a 50% drawdown has a 90% win rate over one year with a median return of +95%. At a -70% drawdown, the win rate is 100%, with no losses reported.