Bitcoin [BTC] has rallied more than 40% year to date, taking the sensational cryptocurrency above $5,000, though the reasons for the price hike are not very clear. Bitcoin bulls may have a long-wait for the cryptocurrency to return to its all-time highs according to UBS research analyst Kevin Dennean. Business Insider reported on April 18.
From the beginning of April the bitcoin price initiated a massive 19 percent rally from $4,200 to $5,000. On April 3 the cryptocurrency was seen trading $5,300, the all-time high since November 2018 across several major crypto exchanges.
Experts opinionate, the sudden bull rally of bitcoin which occurred in minutes might have been triggered due to two major factors. According to reports there were approximately $80 million worth sell orders and liquidated $500 million worth of short contracts as the sell orders were absorbed by buyers.
According to the data compiled by UBS analyst Kevin Dennean, despite the recent rally, the wider breakdown of the cryptocurrency has largely followed the path of previous bubbles.
The collapse of the most prominent cryptocurrency is compared to other popular bubbles such as crashes of the Shanghai A-shares in 2015, Oil in 2008, NASDAQ in 2000, the Nikkei in 1989 and Dow Jones in 1929.
Dennean writes in the research note,
"The argument here is that bitcoin has gone through its bubble phase and is ready to rise phoenix-like from the ashes just as other assets and indices did in the past."
However, those waiting for a crypto-recovery - to reach the all-time high may have to wait long time
The report suggest that, all the asset classes including the prominent cryptocurrency Bitcoin except Shanghai have collapsed by more than 75% from its all-time peak. Only the Dow Jones and NASDAQ have been recovering to its previous levels. Whereas Nikkei even after 30 years of its collapse has not recovered and is currently trading half its peak level.
"Maybe crypto-bull contingents should consider what happens after the bubble - not every bubble that bursts recovers the old highs."
According to the data from CoinMarketFeed, Bitcoin is up 40% year to date and 74% down from its all-time high of $19,783.21 reached in December, 2017.