Fidelity Analyst: Bitcoin Pullback Magnitude Aligns with Past Acceleration Phases, Still Potential for "Initiating Second Leg of Major Uptrend"

BlockBeats News, April 1st, according to Cointelegraph, Fidelity Digital Assets questioned the viewpoint that "Bitcoin has already reached its cycle high" in its latest report, suggesting that Bitcoin may be on the eve of the next "acceleration phase."

Fidelity analyst Zack Wainwright pointed out that a typical characteristic of the Bitcoin acceleration phase is "high volatility and high returns," similar to the price action when BTC surpassed $20,000 in December 2020. Despite Bitcoin's year-to-date return of -11.44% and a retracement of nearly 25% from its all-time high, Wainwright believes that the recent performance aligns with the average retracement following the acceleration phase in previous cycles.

Wainwright believes that Bitcoin is currently still in the acceleration phase but nearing the end of the cycle, having lasted for 232 days as of March 3rd. Historical data shows that acceleration phases in 2010-2011, 2015, and 2017 peaked on the 244th day, 261st day, and 280th day, respectively, with each cycle duration extending. However, historically, acceleration phases typically experience two primary uptrends, with the first occurring after the elections. If able to break past the previous high again, the starting point of the second primary uptrend may be around $110,000.