The latest Bitcoin news show that according to historical data, the price of the dominant coin may take anywhere from 3 to 12 months in order to reach its all-time high levels. The BTC history also shows that the cryptocurrency has had four market cycles since its inception in 2009. It went from a bottom to a new peak, while the cycles ranged from over 600 days to around 1,050 days.
The most recent cycle in the BTC history has just surpassed 300 days, which suggests that it could last 3-12 more months. If the price of Bitcoin remains stable for several months to potentially a year, it could achieve two things.
First, it could strengthen the fundamental ground of the next explosive rally, as seen between 2016 and 2017. The cryptonews also show that in a second scenario, it could cause other cryptocurrencies or altcoins, to reach new heights, as some investors predict.
The BTC history shows that the price of the dominant coin was at a mere $3,596 on BitMEX on March 13. Within six months, the coin has recorded a 220% upsurge, with which it outperformed most traditional assets and indices, including gold.
This steep vertical rally of Bitcoin could raise the chances of whales – in other words large individual Bitcoin holders – to take profit. When this happens, the nature of the futures market may result in a deep pullback due to the cascading liquidations. According to Dan Tepiero who is the co-founder of 10% Holdings:
“Prepare to be patient in Bitcoin. Each up cycle takes longer to play out and is less extreme as absolute dollar value gets much larger. May or may not be another 6-12 months before price breaks up. Should not matter as end price point obscenely higher. Hodlers rejoice.”
Knowing that the block reward halving pushed BTC up a bit, there is still some room for growth and potentially a rally that can help the dominant coin reach its all-tie highs. In that manner, if Bitcoin follows a similar trend as in the BTC history during the post 2016 halving style, it could see a strong uptrend in late 2021. This would perfectly line up with the stock-to-flow model that suggests that BTC will reach six figures sometime next year.