There were far too many things to forget in 2022, but the bad news for cryptocurrency continues. For the first time, Bitcoin (BTC) and Ethereum (ETH) failed to surpass their previous cycle highs by the end of the year.
Bitcoin and Ethereum closed lower than their previous cycle highs for the first time in 2022.
Delphi Digital, an institutional crypto research firm, revealed the bleak end-of-year price metrics on Jan. 3. The 200-week moving average was also identified as a critical level that had never been breached in previous cycles.
“BTC had never failed to hold its 200-week moving average, which has historically been a critical support level for cyclical bottoms.”
BTC reached a cycle high of $20,000 in December 2017. As FTX collapsed, it fell below this level for the last time in early November. Bitcoin has yet to reclaim this price zone and is currently trading around 16.5% below it.
Furthermore, Bitcoin is still trading far below previously reliable price floor indicators like the 200-week moving average. According to Woo Charts, this is currently worth around $24,400. BTC is currently 31% below this level, a record low in comparison to previous cycles.
The Bitcoin Realized Price is now $19,700, which is still significantly higher than current market prices. The Realized Price is the value of all coins in circulation at the time they were last moved. It could also be regarded as a rough estimate of what the entire market paid for their coins.
Ethereum isn’t faring much better, having closed lower than its previous cycle high. ETH prices peaked at $1,450 in January 2018, and are now hovering around $1,200, 16% lower.
Last year, crypto markets were battered by waves of fear and large-scale meltdowns. In addition, there has been a massive macroeconomic storm to contend with. However, cycles may be lengthening, implying a lower likelihood of a recovery in 2023.
Bitcoin prices are up slightly from the weekend, but remain range-bound. During the past week, when most of the world was on vacation, there has been almost no volatility. BTC was trading at $16,696 at the time of writing, as the tedium continued.
Ethereum is in a similar position, having gained only 1.3% on the day. As a result, according to CoinGecko, ETH was changing hands for $1,216.