The price of Bitcoin recently hit a new 2020 high, but has since fallen back below $12,000. However, the cryptocurrency has risen slightly more than expected, according to a top cryptographic expert and former Google engineer.
Since the digital asset is well beyond its cyclical “trajectory”, this could mean more downside before the bull market heats up. In the end, though, it didn’t matter, as the same predictions helped the cryptocurrency peak at more than $325,000 in less than two years.
Bitcoin may be too bullish, and the trajectory to the next peak has been completed ahead of schedule
On November 29, 2017, the price of Bitcoin breached $10,000 for the first time, giving it a market value of nearly $170 billion, before climbing to an all-time high of $20,000 on December 19 of that year. Since then, the price of Bitcoin has fallen sharply. In December 2018, the price of Bitcoin fell to around $3,200. But in recent days, bitcoin has been in a strong uptrend driven by a combination of factors, fully recovering from its lows and then recovering somewhat. The halving of the cryptocurrency’s closed reward is now over — a bullish event given the huge impact it had on an already scarce supply.
Experts such as Vijay Boyapati, a former Google engineer, and several top industry analysts believe the asset follows a four-year cycle driven by this important event. The hype around halving helped cryptoassets claw back $9,000 and then spend months consolidating below resistance. After breaking through $10,000 resistance, momentum alone caused the FOMO to rebound above $12,000. Boyapati said the rise pushed the price of bitcoin slightly higher than expected compared with the previous four-year cycle.
The same cycle predicts that the peak of the next cycle will be in
According to cryptographers, if cryptocurrencies had followed the last cycle exactly, the price per BTC would have traded around $10,800. Currently, BTC/USD has started to move back after reaching a local high of us $12,400, with the trading price rising by about US $1,000.
The same data suggests that bitcoin prices will hit a new all-time high somewhere around Christmas — a gift, perhaps, to crypto investors who have already endured a long crypto winter and bear market.
If bitcoin continues down this path, the next peak will come around October 19, 2021, and could reach $325,000.
That lofty goal, coupled with an increase from $10,000 to more than $300,000, may not sound realistic. At that price, however, the cryptocurrency’s market value would be just over half that of gold. Adding a Schiff Pitchfork to the same price trajectory also seems to mark the expected top perfectly.
The same four quadrants of the tool have also served as support and resistance at different stages of the past two market cycles, suggesting that this trend is at least partly possible.
If, as this trajectory predicts, the peak approaches mid-October, the four-year cycle theory will be tested and the world will know to buy the next drop.