🎢 [Analysis] Corrections and recoveries - Boris Hristov

While there is a good chance that Bitcoin ($BTC) recovers from its current low it will be harder than in previous cycles according to Boris Hristov. The bear market between 2013 and 2015 saw markets fall 84% and a new high reached only once trading volumes started to increase. In this market, due to the smaller size, it took a 4x growth in volume to reach a new high, compared to around 1.4x for smaller market drops in more recent years. According to Hristov one way to gauge the current possibility of a recovery is to watch trading volumes, which currently sit at $2.250 trillion. A move towards $3.191 trillion could lead to a new high for Bitcoin using a 1.4x multiplier. Hristov also posits that a more accurate measure would be a fiat multiplier, which measures how much fiat currency must enter the market to move price to a new high. Under this method, it could require anywhere between $10 billion and $100 billion, which could come from a variety of sources. While there is an uphill battle ahead, Bitcoin is the only cryptoasset that has historically recovered from multiple sharp declines.