Bitcoin’s price is currently just 14% below its all-time high, and experts predict that it could reach over $80,000 in the coming weeks. However, when adjusting for inflation, a new all-time high of around $100,000 may not be as impressive as it seems.
Bitcoin analyst Luke Broyles argues that crossing the $100,000 mark will only match Bitcoin’s buying value in 2021. Adjusting for inflation, the ATH price from 2021 would be $83,000 at the moment. Data from the US inflation calculator supports this claim, showing that an item bought for $69,000 in 2021 would now be priced at $80,159.88 due to a cumulative inflation rate of 16.2%.
Despite September historically being a bearish period, Bitcoin’s price has increased by 18% over the past 14 days. It is now facing a crucial test before a potential bullish trend shift. The one-day chart shows that Bitcoin has been experiencing lower highs and lower lows since March 2024. The next key milestone for Bitcoin is to flip the resistance zone at $65,000 into support, which would indicate a change in trend.
If $65,000 can be turned into support, it would mark the end of the long-term downtrend and the beginning of a new uptrend with higher highs and higher lows. Immediate resistance above $65,000 is around $71,500. Last month, there was speculation about a potential breakout in September, which could lead to a rally towards $86,000. The price action so far has followed this pattern, with a “megaphone” pattern suggesting a 34.37% increase in the next few weeks.
The megaphone pattern indicates a setup of higher highs and lower lows, which could either confirm a macro top or a macro bottom. Currently, the price is on the rise, indicating that Bitcoin may be close to confirming a bottom and potentially heading towards higher prices.
It’s important to note that this article does not provide investment advice or recommendations. Investing in Bitcoin involves risks, and readers should conduct their own research before making any decisions.