Bitcoin currently trades at $68,042. Crypto market analysts predict that Bitcoin prices could be headed for a 6-figure price if previous market cycle patterns are to be repeated.
Also Read: Spot Bitcoin ETFs Finally Revive, See $1.4B Weekly Inflows
Bitcoin climbed above $71,000 this week, breaking out of the tight trading range it had been confined to for several weeks. Market analysts note that the strong demand for ETFs is one of the main catalysts for this price spike. Over the last seven days, there have been approximately $1.2 billion in ETF net inflows.
Bitcoin Sets Sights to 6-Figure Digits
According to market analysts, the last 2 cycles may provide an indication of where BTC prices might head after breaking the previous all-time high. Bitcoin peaked at around $1,130 in the 2013 cycle. However, the price did not break this level again until March 2017. In the three months that followed, BTC prices doubled.
Moving on, in 2017, BTC broke its $20K all-time high in December 2020. In a month after that, BTC prices doubled.
In 2021, Bitcoin hit $69,000. This all-time high was topped in March 2024, with the coin trading above $73,000. With this analysis, BTC prices could potentially double to around $140,000 within the next few months if cycle history sticks to pattern.
“Alpha Analysis” provided a similar analysis on May 23 in a post on X. The trader added that in 2014 and 2017, there were multi-week corrections after the brand-new price peak and before new ATHs graced the market.
In 2017 the price of Bitcoin doubled in just 4 weeks after it established brand new all time highs.
— alphanalysis.io (@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
As it stands, Bitcoin markets appear to be mirroring this historic action. The asset had corrected 23% by May 2 but recovered to remain largely range-bound since it broke the 2021 all-time high on March 12.
Demand for BTC Could Spike 2024’s Bull Run
CryptoQuant’s analysis suggests that ETFs have seen around $1.2 billion in net new inflows. The data shows increased buyer interest in gaining exposure to the asset. These capital flows into spot BTC ETFs have significantly boosted BTC’s price.
The platform views a period of consolidation in the $60,000 to $70,000 range as more plausible in the near term, highlighting that there are currently no major positive economic factors at play that would drive a huge influx of new capital and push Bitcoin past $75,000.
While concerns persist about Bitcoin returning to consolidation, the analysis report also highlights emerging signs that the next major rally could begin sooner than anticipated.
Glassnode analyst James Check states that markets are still quite far from the true euphoria phase of this bull cycle. He adds that “we’re on the boundary between enthusiasm and excitement, but not yet euphoric.”
#Bitcoin is Still Quiet, and Still Trending.
— _Checkmate 🟠🔑⚡☢️🛢️ (@_Checkmatey_) May 22, 2024
In my view, we're quite far from the true Euphoria phase of this bull market.
You could argue we're on the boundary between Enthusiasm and Excitement, but not yet Euphoric.https://t.co/ZvplEcKcKk pic.twitter.com/h1SC3lDjPC
At the time of writing, the global crypto market cap today stands at $2.69 Trillion. As of today, BTC’s market cap sits at $1.34 Trillion, representing a 49.99% market dominance. Meanwhile, Stablecoins’ market cap is at $161 Billion, a 5.99% share of the total crypto market cap.
BTC Price Action and Predictions
Bitcoin prices are currently trading very close to their November 2021 all-time high, which is building a base of support. A fall from the current market price could see it fall back to support at $67,000, but a move higher would reach resistance at $71,000.
Also Read: Crypto Market Tensions Rise as ETF Decision Nears for Ethereum
Ethereum, on the other hand, has held on to recent gains. At the time of writing, Ethereum trades at $3,802.53. The crypto community eagerly awaits the US Securities and Exchange Commission’s decision on whether to approve or ditch America’s first Spot Ethereum ETF.
X’s popular crypto analyst Ali Martinez suggests very “minimal resistance” within the $70,180 to $70,600 price range.
#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
If Bitcoin manages to power through the $70,180 to $70,600 area, the path of least resistance will point higher. But if selling pressure stalls the rally in this range, it could temporarily cap the upside.
Cryptopolitan By Florence Muchai
