Bitcoin is following a similar trajectory as it did after the 2016 Bitcoin halving event, with indications that it may be approaching its local bottom and could potentially reach $350,000 during the peak of this cycle, according to cryptocurrency traders.
A pseudonymous crypto trader known as Rekt Capital stated on May 11 that Bitcoin is mirroring the events of 2016, as it has dipped below the bottom of its current re-accumulation range within a three-week timeframe after the halving. The re-accumulation range at this stage of the cycle is any price below $61,081, which Bitcoin is currently trading below at $60,901, according to CoinMarketCap data.
Furthermore, Rekt highlighted that Bitcoin is currently in the last pre-halving retrace stage, which, as seen in 2016, led to a 48% surge just six months later. On December 30, 2016, Bitcoin reached a price of $973.
However, Timothy Peterson, the founder and investment manager at Cane Island Alternative Advisors, believes that Bitcoin’s price could rise significantly based on the all-time high chart. Peterson estimates that by the beginning of 2025, Bitcoin’s price may increase nearly sixfold.
According to Peterson, based on adoption and prior drawdowns, the peak value of this cycle could be between $175,000 and $350,000 in the next nine months. He also predicts that the bull market will end in January 2025.
In addition, pseudonymous crypto trader Daan Crypto traders analyzed the daily 100 moving average, which suggests that Bitcoin’s price may be hovering around its local bottom. They compared this to a similar formation seen after the approval of 11 spot Bitcoin exchange-traded funds in January, which resulted in a 32% price increase just a month later.
While these indicators point to potential price movements, it is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment decisions.