Bitcoin price is back over $50,000 after bullish news broke this morning regarding Coinbase officially filing to go public. However, according to a fractal from the last bull market cycle kicking off in early 2017, that number could be merely the halfway point to where the cryptocurrency will trade in just two months from now.
Here’s a look at the similarities between the two cycles, and the roadmap that takes the price per BTC to $100,000 and higher within the next couple of months.
Characteristic Bitcoin Volatility Returns, Price Swings Reach $10,000 In A Single Day
Bitcoin volatility is picking up, starting with an explosive move from $10,000 to $50,000 in a few short months. The complete repricing of the coin has been due to institutional investors scrambling to buy what they can of the scarce crypto asset.
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At only 21 million coins and a market cap of under $1 trillion, Bitcoin is expected to grow in the long-term reliably. And in an economic climate where growth is challenging to come by, the cryptocurrency has become especially attractive.
But as Bitcoin price discovery takes place, volatility is bound to ensue and is has in recent weeks as the cryptocurrency recently shed 20% in a single day. At prices of $50,000 per coin, a 20% dive means $10,000 in value apiece evaporating into thin air, compared to the $1,000 per plunge crashes during the last bull market.
The structure is strikingly similar, albeit less volatile overall | Source: BTCUSD on TradingView.com
Early 2017 Fractal Suggests Deeper Downside Possible, Rebound To $100K By May
On the way up the last time around, price action closely resembled the current market volatility. Taking a comparison between early 2017 when Bitcoin was trading in the four-digit range and now, the similarities are strikingly clear.
If the same path is followed, Bitcoin could see further collapse before experiencing a sharp rebound to more than double the price. The price action will play out quickly, taking Bitcoin price first to $75,000 in April, then $100,000 by the time May rolls around.
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It is also important to note that the path following the fractal continues onward from there as well. By the time the fractal runs out of room on the price chart above, the cryptocurrency tapers off at just $2,000 per BTC.
The cryptocurrency did another 10x from the end of the above price action, and if the fractal continues the same from current levels, it could potentially put each Bitcoin at a price of $1 million per coin before the top of this cycle is in.
What do you think – can Bitcoin price really climb that high before the next peak is in?
Featured image from Deposit Photos, Charts from TradingView.com