An analyst has explained why Bitcoin could end 2024 within the $108,000 to $155,000 range if the asset’s history repeats itself.
Bitcoin’s performance has been similar to the last two cycles so far
In a new publish In X, analyst James Van Straten discussed BTC’s price performance on the cycle low chart over the past two cycles. As its name suggests, this chart captures the price trend between successive cyclical lows. For the latest cycle, the starting point is naturally the bottom that was observed right after the collapse of the FTX cryptocurrency exchange at the end of 2022.
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Below is the chart shared by Van Straten, which shows how this most recent cycle compared to the last two so far:
As can be seen, the asset’s recent price performance has been remarkably similar to that witnessed in the last two cycles in the same phase. “Of all the charts, TA etc, Bitcoin’s low cycle remains the most valid,” the analyst notes. Given the similarity so far, it is possible that the coin’s trajectory in the current cycle will continue to mimic that of the last two.
Van Straten pointed out that both cycles ended September on a high. Not only that, this is also the point at which both began a lasting wave that culminated in bullfight highs. So it is possible that Bitcoin could also break out from here if the current cycle continues to follow the last two.
“If BTC finished EOY between the previous two cycles, which it did for most of the current cycle, we would be looking at 108k-155k,” the analyst explains.
From Bitcoin’s most recent price, a rise to the lower end of that range at $108,000 would mean an increase of around 70%, while a rise to the upper end of $155,000 would suggest growth of over 144%.
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However, as is always the case with historically dependent patterns, it is not necessary for BTC to stage a recovery in this range to end the year. However, says the analyst, “if we do not get a recession, that is entirely possible.”
In some other news, as market intelligence platform IntoTheBlock pointed out in a publishTether stablecoin, USDTrecently reached a new high in its offering.
As displayed in the chart above, USDT’s market cap has witnessed a sharp growth recently. With the metric’s value now at nearly $120 billion, Tether’s token has left other stablecoins in the dust.
Inflows into the stablecoin may actually be relevant for Bitcoin, as USDT capital generally tends to flow into the original cryptocurrency. Thus, the rise to a new record suggests that investors potentially have more dry powder available to buy BTC than ever before.
BTC Price
Bitcoin has become stale after its recent rally as its price is still trading around the $63,600 mark.
Featured image by Dall-E, IntoTheBlock.com, Glassnode.com, chart by TradingView.com