Bitcoin (BTC) Could Peak At $80,000 If Crypto’s Cyclicality Persists
May 15, 2019 @ 11:00 +03:00
As Bitcoin has returned over the past few days, many have been left asking where the cryptocurrency market could top. It may be a bit too early to tell, but some are that optimistic. Level’s Josh Rager notes that over Bitcoin’s three completed cycles, the trough to peak gains decreased by around 80% each time, which is a concept defined by the law of diminishing returns. As Rager notes, 2011’s rally saw a return of 320,000%; 2014, 58,500%; and 2017, 12,000%. Thus, if history is followed to a tee, BTC will rally by 2,400% off its bottom, giving it a potential high of just shy of $80,000, $78,500.
Rager’s followers are under the belief that Bitcoin’s next top is going to be dramatically higher than $80,000. In a poll released prior to the tweet seen above, 43% of the 4,300 that responded expected highs of anywhere from $80,000 and beyond. Of course, this isn’t a majority, but it shows that there are many traders in this market that don’t expect for Bitcoin to follow historical trends of diminishing marginal returns to an exact tee.
As Ethereum World News reported previously, Galaxy, claims that Bitcoin’s current monthly chart looks eerily similar to that seen in late-2015, when BTC finally began to embark on a rally yet again. This is notable, as the last time BTC’s chart structure looked as it did now (a massive green candle after ~one year of selling pressure), what followed was a 6,500% price surge in a two-year time frame. Thus, Galaxy notes that if historical precedent is followed to a tee, a bull run of the previous one’s magnitude will place BTC at over $333,000 per unit by the end of 2021.
Bitcoin (BTC) Could Peak At $80,000 If Crypto’s Cyclicality Persists, EthereumWorldNews, May 15