Bitcoin is in a bull market and anyone who understands the potential of cryptocurrency knows it much higher prices are on the horizon in the short and long term. But how high would prices actually hit if the cryptocurrency’s price action mimicked 2017’s epic rally, tick for tick?
An analyst at Ark Invest has drawn up a hypothetical chart showing what could happen if a similar trajectory is followed. And according to the chart, at the peak of the current cycle, the Bitcoin price would be around $ 390,000.
Bull trend emerges, but can it match record-breaking 2017 rally?
When Bitcoin starts to trend – regardless of direction – it trends hard. But while downward trends start sharply and end in a similar fashion, bull markets often have sustained momentum that drives assets to significantly higher prices each market cycle.
Where the cryptocurrency is in its current market cycle is up for debate, but thanks to its assets hard-coded block reward “halve” the cycle can be predicted with some accuracy.
Related reading | GMI model estimates Bitcoin’s fair value at $ 300,000 by October 2021
Where Bitcoin is now could be somewhere before what the creator of the popular stock-to-flow model says is the point of no return. At this point in 2017, the top cryptocurrency jumped from around $ 1,000 to $ 20,000 and became a household name.
This time, according to a graph divided by Ark Invest analyst Yassine Elmandrja, if the same path is followed, Bitcoin could hypothetically reach $ 390,000 per BTC before reaching a peak.
What the linear chart would look like if 2017 repeats | Source: Ark Investment Management, LLC
Bitcoin Bull Run hits final stretch, but is expected to peak at $ 390,000
However, what is not pointed out that if the same path is followed and according to the chart, Bitcoin is somewhere around May 2017, only a few months remain from the current bull run.
This also means that analysts expect the price of Bitcoin to rise by more than ten fold in the coming months as investors rush to buy up the remaining supply.
Related reading | Sats Statistics: Bitcoin is growing 37x in four years from today
Bitcoin did about a 10x from Black Thursday to now, but can it do another 10x from here? Anything is possible given supply constraints and the sudden influx of institutional capital that could come soon.
The chart shared by the analyst may seem ridiculous, but as evidenced by the 2013 peak that barely represents a blip on the chart, the same is possible again.
The same trajectory, but on log scale | Source: BTCUSD on TradingView.com
Look at the same graph in logarithmic scale shows a more realistic view of the same chart, with parabolic curves to support the trajectory that takes price per BTC towards the hypothetical implicit target.
Could Bitcoin really hit $ 390,000 each mint before you reach a peak?
Featured image from Deposit Photos, Charts from TradingView.com