Bitcoin Price Analysis Points to Potential Market Low

The Bitcoin price has been experiencing a significant downtrend over the past five months, with a loss of 45% from its all-time high of $126,272 to its current value of around $69,000. This decline is part of a broader market trend, with the asset's market cap plummeting to $1.37 trillion.

Historical data suggests that bear phases in Bitcoin typically last between 21 and 23 months from peak to bottom. Currently, the cryptocurrency has been in this phase for around 23 months, which coincides with previous instances of cycle bottoms.

A technical analysis by Coinvo notes that this duration marked cycle bottoms without exception to date. Additionally, the Bitcoin's Sharpe ratio, which measures risk-adjusted performance, has gone into deeply negative territory recently, similar to past late-stage bear phases.