A year ago, the crypto market was in such a slump that the idea that Bitcoin could retest its all-time high of just under $69,000 was scoffed at. Twelve months have passed since then, and some research now points to this possibility.
Technical analysis of Bitcoin’s rise to $52,000, the largest digital asset, compared to previous significant gains, points to further gains in the coming weeks. However, you need to be careful. The past isn’t always a reliable guide to the future, especially for an asset as young and enthusiastic as Bitcoin.
Weekly increase
Bitcoin prices have tripled since early 2023 on the back of optimism about US exchange-traded funds (ETFs) and the impending halving. This includes the four-week high up to February 18th. Over the past five years, Bitcoin has risen an average of 49% in the three months following a four-week high, according to data compiled by Bloomberg. If this holds true, Bitcoin will rise to around $78,000.
An uneven road
Source: Bloomberg
Elliott wave theory states that markets tend to repeat wave patterns. Applying this theory to Bitcoin suggests that it will retreat towards the $40,000 level before rising to about $70,000. Bitcoin hit an all-time high of $68,992 in November 2021, when economic stimulus measures were being implemented around the world.
Bitcoin was worth $51,956 as of 6:30 a.m. Singapore time (7:30 Japan time) on the 20th.
news-rsf-original-reference paywall">Original title:Bitcoin Weekly Streak Puts Record High in Sight If History Right(excerpt)
2024-02-20 00:59:51
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