Making sense of the path Bitcoin’s price will take in the near future
Each time a halving occurs, Bitcoin sees a dramatic surge to a new all-time high, beyond many expectations. Bitcoin’s value sees regular pumps, followed by regular dumps until it eventually stabilizes with a new bottom. For some months, it trades relatively sideways until a second surge begins.
Based on this narrative, can Bitcoin record a new ATH in 2021?
Analyst Bit Harington, in a series of tweets presented a similar scenario inspired by Bitcoin’s bull runs, post halving.
Bitcoin’s halving event in 2012 and 2016 saw the token rise by more than 600%, when measured from the resistance/support (R/S) line. Analysts (in the past and even now) perceive the halving as a bullish event. The said analyst is no different. He opined,
“What if…? Bitcoin
[R=Resistance, S=Support] From the R/S line Bitcoin pumped ~6X after halving 1 (~$200 to ~$1200) and also ~6X after halving 2 (~$3K to ~$20K)…”
In 2020-2021, Bitcoin witnessed an immense surge; a surge from below $4,000 to rising to above $60,000. (see chart below). Well, now, maintaining the $60k mark as the same R/S line – a clear bullish breakout looks imminent.
BTW: From this perspective there's a "Bitcoin double top" after every halving. It wasn't really obvious after halving 2 (like the obvious double top after halving 1), but you can still see this double top in various indicators. Weekly RSI for example:https://t.co/lopvWPqd3v
— Bit Harington (@bitharington) September 19, 2021
Dutch trader and analyst Michaël van de Poppe too added some support to the aforementioned analysis. As per his tweet, it would lead Bitcoin prices to the $250,000-$350,000 range. Poppe, on the same thread, added,
“This makes a ton of sense and in line with my ideas too. Somewhere (in) 2017 we are. Heavy breakout to come at a later stage to ~$250-350K and then landing on $65K in the bear market for Bitcoin.”
Having said that, he hinted at a possible correction as well. The bear market could push Bitcoin prices back toward $65,000. Apart from this, other members in the community too agreed with the aforementioned analysis. Now, needless to say, a certain group completely slammed the said thesis. Something that remains common within the crypto world. For instance,
Many Bitcoiners claim $BTC will hit $1M.
To keep its network online, #Bitcoin would need to consume around 12-18% of the world's global electricity.
Bitcoin cannot scale at all and has no real utility, which is why anyone with a brain knows the future is with alts.
— Mr. Whale (@CryptoWhale) September 18, 2021