Bitcoin research said that BTC price action remained in tune with previous cycles as the bear market produces a 20% discount to its four-year "adoption structure" trend line.
Bitcoin (BTC) is “compressed” at low levels but its classic cycles remain intact, say new research.
In an X post on Wednesday, analyst David Eng said that BTC price action still “runs on two clocks.”
“400-day clock, $BTC looks cyclical. ~4-year clock, the cycle noise gets filtered out and the adoption structure appears,” he summarized.
Marking time for Eng are the 400-day simple moving average (SMA), as well as its four-year equivalent. The former is notable for its ability to act as support throughout Bitcoin bull markets, seeing no daily candle closes below it this cycle or last.
BTC/USD one-day chart with 400SMA. Source: Cointelegraph/TradingView
On four-year time frames, meanwhile, a cleaner uptrend emerges, with price fluctuating above and below the trend line depending on its position in the cycle.
“The point is that Bitcoin keeps stretching away from this adoption structure and then reverting back toward it,” Eng summarized.
Currently, the four-year trend line suggests a fair price of around $76,400, making BTC/USD undervalued by around 20%. A chart uploaded by Eng also shows Bitcoin’s Power Law price, this now well into uncharted territory at nearly $135,000.
“$BTC is not broken,” he concluded.
As Cointelegraph reported, historical comparisons suggest that Bitcoin’s current bear market will continue for some months yet.
Related: US dollar strength hits highest since May 2025: Five things to know in Bitcoin this week
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