- Bitcoin has broken the last long-term trend line
- The line, dating back to August 2015, was ended this month
- This isn’t necessarily a bad thing however, merely reflective of Bitcon’s growth
Bitcoin has finally broken the last remaining multi-year trendline, putting into context the severity of the current crash. However, while some may see this as a sign of impending doom, it’s more suggestive of a shift in how Bitcoin is behaving, with prior growth now clearly unsustainable.
Bitcoin Has Been Breaking Trend Lines For Months
We have covered Bitcon’s successive breaking of established trend lines for the past year or so, with both short-term and now long-term support structures failing. The latest to go is the final long-term trend line that Bitcoin had left in play, a seven-year trendline dating back to the Bitfinex flash crash of August 2015 and taking in the March 2020 flash crash and June 2022 capitulation as well:
Bitcoin had initially treated this line as support in each of the last three months, but with August turning into September and price continuing to stagnate, the trend has now been broken.
Not a Portent of Doom
Of course, this isn’t necessarily a doomsday scenario, and it’s certainly not as important as a key price level being broken, but it is symptomatic of a changing asset. Bitcoin’s prior market cycles have seen it enjoy stratospheric rises in market cap, from $13 billion in 2014 to $330 billion in 2017 and then $1.2 trillion in 2021. There is no way Bitcoin can keep up with this kind of growth, which means a slowing down is going to be inevitable.
This means that as Bitcoin experiences expanding and slower cycles, its prior growth will be deemed irrelevant, which is why we’re seeing older trend lines being broken. The Bitcoin that we have known and loved for the past 14 years is morphing into something very different, and with that will come a change in the way it behaves.
