Everyone is trying to figure out what will be the peak of the current Bull Market. However, when investing, you need to be forward-looking and think ahead. While the price target for the current market cycle is still very uncertain, it may be easier to foresee what will be the price floor of the next bear market.
Looking at the previous cycles, in both cases, the parabolic uptrend had a brief re-accumulation phase at around half of the way. The price level at which that consolidation happens market years after the same level at which the Bear market followed found its final support.
What if the current sideways price action on Bitcoin anticipates a more significant price drop instead of a new leg up? That is possible, yet unlikely. Usually, parabolic uptrends end up in a much sharper way. On-chain data and the macro environment are still positive, and that could offer a supportive tailwind for months.
Why predicting the bottom of the next Bear market is important? Because knowing that you have the chance to buy below such levels adds significant upside to your investment and will protect your allocation in future drawdowns. Short-term volatility may push prices slightly lower, but dollar-cost averaging Bitcoin may be a very interesting long-term strategy.
The best time to accumulate Bitcoin was years ago. The second-best time may be now.