Volatility Kills the Trend: Why the Next Bitcoin Top Might Surprise You

Before we compare cycle tops, it's important to contextualize to better understand the dynamics behind them.

Due to the global liquidity scenario, the current cycle more closely resembles 2017 than the previous cycle in 2021. In the 2021 cycle, there was a strong injection of liquidity in response to the pandemic, which resulted in a highly volatile movement. Cycles with high volatility tend to lose steam earlier, as volatility itself compromises the continuation of the trend. In other words, what makes Bitcoin fall is precisely it rising too much, too fast. A little-known concept that explains this is: "Volatility Kills the Trend."