Historical data shows that the price of bitcoin could now be traded sideways for several months to a year. Since the inception of Bitcoin in 2009, it has had four market cycles, from a bottom to a new peak. The range of the cycles was from over 600 days to around 1,050 days. The most recent cycle has just surpassed 300 days, which suggests that it could last for more(probably three to four months).
If the price of Bitcoin remains stable for several months to a year, then it could achieve two things. The first thing it could achieve is, it could strengthen the fundamental ground of the next explosive rally as seen between the year 2016 and 2017. Second thing it could achieve as some investors predict is, it could cause other cryptocurrencies, or altcoins, to reach new heights.
Bitcoin Price to break $20 K in the coming year.
The price of Bitcoin on BitMEX on March 13, was at a mere $3,596. Within six months, BTC has recorded a huge 220% upsurge, outperforming most of the traditional assets and indices, including gold.
The vertically steep rally of Bitcoin could raise the chances of large individual Bitcoin holders or whales to take profit. When that happens, the overleveraged nature of the futures market may result in a major pullback due to cascading liquidations.
But if it gradually recovers over time and remains above the $10,000 support level, it could lead to a more sustainable and long-lasting bull cycle. 10% Holdings co-founder Dan Tepiero said:
“Prepare to be patient in Bitcoin. Each upcycle takes longer to play out and is less extreme as absolute dollar value gets much larger. May, or may not be another 6-12 months before price breaks up. Should not matter as end price point obscenely higher. Hodlers rejoice.”
If BTC follows a similar trend as the post-2016 halving cycle, then it could see an uptrend in late 2021. This would also sync up perfectly with the popular stock-to-flow model that suggests Bitcoin price may reach six figures sometime next year.
Typically, a prolonged period of stability for BTC has led the altcoin market to perform strictly. A partner at the Asia-based cryptocurrency fund Spartan Black, Kelvin Koh, hinted it could buoy the sentiment around the altcoin market.