- Bitcoin recently surged past $71,000, driven by strong ETF demand and historical price patterns suggest it could potentially double to around $140,000 in the coming months.
- Analysts point to previous cycles where Bitcoin experienced significant gains after breaking all-time highs, with current market behavior and ETF inflows supporting this potential upward trajectory.
Bitcoin has recently surged past $71,000, breaking out of its prolonged tight trading range. This significant price jump has been largely attributed to the strong demand for Bitcoin Exchange Traded Funds (ETFs). Over the past week alone, ETFs have seen net inflows of approximately $1.2 billion, demonstrating a robust interest in gaining exposure to Bitcoin through these financial instruments.
Historical Patterns Point to Major Gains
Market analysts are looking to Bitcoin’s historical cycles to predict its future trajectory. In the 2013 cycle, Bitcoin peaked at around $1,130, a level it did not surpass until March 2017. Once this previous high was broken, Bitcoin’s price doubled within three months. A similar pattern occurred when Bitcoin breached its $20,000 all-time high in December 2020. The price doubled again within a month.
Fast forward to 2021, Bitcoin achieved a record high of $69,000. This peak was surpassed in March 2024, with Bitcoin trading above $73,000. If Bitcoin’s price history is any guide, the current rally could potentially double Bitcoin’s price to around $140,000 within the next few months.
In 2017 the price of Bitcoin doubled in just 4 weeks after it established brand new all time highs.
— The Weatherman (@Sawcruhteez) May 22, 2024
In 2021 the price of Bitcoin doubled in just 4 weeks after it established brand new all time highs.
In 2024 the same action would imply a $138,000 price by the end of June.🚀🌛 pic.twitter.com/4kOBPa6y11
Analysts from “Alpha Analysis” echoed this sentiment in a recent post on X. They highlighted that, in previous cycles, Bitcoin experienced multi-week corrections following new price peaks before rallying to new all-time highs. Bitcoin’s market behavior seems to be following this historical pattern, as the asset had corrected by 23% by early May before stabilizing within its range.
Current Market Dynamics
CryptoQuant’s analysis underscores the significant impact of ETF inflows on Bitcoin’s price. The $1.2 billion in net new inflows into Bitcoin ETFs indicates growing buyer interest, which has been a key factor in the recent price surge. Despite this, CryptoQuant suggests that Bitcoin may enter a period of consolidation between $60,000 and $70,000, given the lack of major positive economic factors to drive a massive influx of new capital.
While some market watchers are concerned about Bitcoin reverting to a consolidation phase, others, like Glassnode analyst James Check, believe the next major rally could be imminent. Check notes that the market has not yet reached the euphoria phase typical of bull cycles, suggesting further upside potential.
https://twitter.com/Checkmatey/status/1793398078936109482?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1793398078936109482%7Ctwgr%5E7fbe1b48d216f8a954288d2f248daecfeeede381%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.cryptopolitan.com%2Fbitcoin-heads-for-140k-history-reads%2F
As of now, Bitcoin’s market cap stands at $1.34 trillion, making up nearly 50% of the global crypto market cap of $2.69 trillion. Support for Bitcoin is seen at $67,000, with resistance at $71,000. Ethereum, another major cryptocurrency, is also performing well, currently trading at $3,802.53. The crypto community is eagerly anticipating the US Securities and Exchange Commission’s decision on the approval of America’s first Spot Ethereum ETF.
#Bitcoin encounters minimal resistance! The key supply zone to watch is between $70,180 and $70,600, where over 450,000 addresses acquired 273,000 $BTC. With strong support levels, the odds are in favor of the bulls! pic.twitter.com/ecdqbb414l
— Ali (@ali_charts) May 22, 2024
Bitcoin’s historical patterns hold true, we could see its price doubling to around $140,000 in the near future. However, investors should remain cautious and watch for potential consolidation phases and resistance levels that could influence Bitcoin’s next moves.
