Bitcoin is currently being traded at $68,042, and experts in the crypto market believe that the price of Bitcoin could reach six figures if historical market patterns repeat themselves.
Bitcoin experienced a significant breakthrough this week, surpassing the tight trading range it had been confined to for several weeks, and reaching a price above $71,000. This surge in price is largely attributed to the strong demand for ETFs. In the past seven days alone, ETFs have seen approximately $1.2 billion in net inflows.
Market analysts have studied the previous two market cycles and have drawn conclusions about where the price of Bitcoin may go after surpassing the previous all-time high. In the 2013 cycle, Bitcoin reached a peak of around $1,130, but it did not break this level again until March 2017. In the three months following the breakout, the price of Bitcoin doubled.
Similarly, in 2017, Bitcoin broke its previous all-time high of $20,000 in December and doubled in price within a month. In 2021, Bitcoin hit $69,000, which was surpassed in March 2024 when the coin traded above $73,000. Based on this analysis, if historical patterns hold true, the price of Bitcoin could potentially double to around $140,000 in the coming months.
On May 23, “Alpha Analysis” shared a similar analysis on X, stating that in 2014 and 2017, there were multi-week corrections after reaching a new price peak before new all-time highs were achieved.
Currently, Bitcoin markets seem to be following this historical trend. The asset experienced a 23% correction by May 2 but has since remained range-bound after surpassing the all-time high in March 2021.
CryptoQuant’s analysis shows that there has been a net inflow of approximately $1.2 billion into ETFs, indicating an increased interest from buyers in gaining exposure to Bitcoin. These capital flows have significantly boosted the price of Bitcoin. The platform predicts that there may be a period of consolidation in the $60,000 to $70,000 range in the near future, as there are currently no major positive economic factors that would drive a significant influx of new capital to push Bitcoin above $75,000.
Although concerns about Bitcoin returning to consolidation persist, there are emerging signs that the next major rally could begin sooner than expected. Glassnode analyst James Check believes that the market is still far from the euphoria phase of the bull cycle, stating that we are currently on the boundary between enthusiasm and excitement.
As of now, the global crypto market cap is $2.69 trillion, with Bitcoin’s market cap at $1.34 trillion, representing a 49.99% market dominance. Stablecoins’ market cap is $161 billion, accounting for a 5.99% share of the total crypto market cap.
In terms of price action and predictions, Bitcoin is currently trading close to its November 2021 all-time high, which is serving as a base of support. If the price falls, it may find support at $67,000, while a move higher would face resistance at $71,000.
On the other hand, Ethereum has maintained its recent gains and is currently trading at $3,802.53. The crypto community is eagerly awaiting the decision of the US Securities and Exchange Commission regarding the approval of America’s first Spot Ethereum ETF.
Popular crypto analyst Ali Martinez suggests that there is minimal resistance within the price range of $70,180 to $70,600 for Bitcoin. If Bitcoin manages to break through this range, the path of least resistance will be higher. However, if selling pressure slows down the rally within this range, it could temporarily limit the upside.
In conclusion, Bitcoin’s price is currently on the rise, and if historical market patterns repeat themselves, it could potentially reach six figures in the coming months. The strong demand for ETFs has been a driving force behind this price spike. However, there may be a period of consolidation in the near term, and the market is still far from reaching the euphoria phase of the bull cycle. Ethereum is also experiencing positive momentum, and its future depends on the decision of the US Securities and Exchange Commission regarding the approval of a Spot Ethereum ETF.