Bitcoin (BTC) has the potential to push its prices to between $250,000 and $350,000 by the end of 2021, a long-standing fractal suggests.
First spotted by pseudonymous analyst Bit Harington, the bullish setup drew its inspirations from Bitcoin’s spectacular bull runs every time after halvings, which is when the miner block reward gets cut in half. Analysts perceive the halving as a bullish event, which reduced the supply of newly mined BTC.
Harington reminded that Bitcoin’s prices surged by more than 600% after the first two halving events in 2012 and 2016 when measured from a so-called resistance/support (R/S) line, as shown in the chart below.
The line represented a barrier during the period of price uptrend. Traders tested it for a breakout multiple times before successfully breaching it to log a new record high. When prices started correcting, they eventually bottomed out near the same line.
In 2020–2021, Bitcoin underwent a similar upside trajectory, bouncing from below $4,000 to rising to above $60,000. Again, Harington highlighted the $60,000 level as the same R/S line that kept trades from logging a clear bullish breakout.
BTW: From this perspective there’s a “Bitcoin double top” after every halving. It wasn’t really obvious after halving 2 (like the obvious double top after halving 1), but you can still see this double top in various indicators. Weekly RSI for example:https://t.co/lopvWPqd3v
— Bit Harington (@bitharington) September 19, 2021
The analyst hinted that Bitcoin would break above it to soar toward a new record price level.
Cointelegraph Markets analyst Michaël van de Poppe reacted to Harington’s fractal theory, adding that it would lead the Bitcoin prices to the $250,000–$350,000 range.
He noted, however, that the massive run-up could also prompt a brutal correction that can push Bitcoin prices back toward $65,000, right near Harington’s S/R level of $60,000.
This makes a ton of sense and in line with my ideas too.
Somewhere 2017 we are. Heavy breakout to come at a later stage to ~$250-350K and then landing on $65K in the bear market for #Bitcoin. https://t.co/4XX7aDp2rs
— Michaël van de Poppe (@CryptoMichNL) September 19, 2021
Do the fundamentals agree?
Bitcoin skyrocketed after crashing below $4,000 in March 2020 primarily due to the global central banks’ loose monetary policies to curb the economic aftermath of the COVID-19 pandemic. The cryptocurrency closed the year at around $30,000, as retail and institutional investors woke up to its safe-haven narrative against a falling United States dollar and rising inflation fears.
So far in 2021, the price of Bitcoin has topped around $65,000 before correcting lower below $50,000. At its year-to-date (YTD) low, the pair traded for $29,301 on the Coinbase exchange. Its losses were led by a sudden ban on all crypto activities in China (including mining) and Elon Musk’s alarming tweets over Bitcoin’s booming carbon footprints.
BTC balance on exchanges drops to fresh lows
The cryptocurrency held prices above $30,000 as its reserves across exchanges dropped significantly.
Blockchain data analytics service CryptoQuant reported that Bitcoin’s balances across the crypto trading platforms slipped to around 2.37 million BTC last week, its lowest in more than a year.
A decrease in Bitcoin reserves represents traders’ intentions to hold the cryptocurrency instead of trading it for altcoins and fiat currencies.
Bitcoin’ hash rate has nearly recovered
Bitcoin’s recovery from below $30,000 to almost $50,000 also coincided with its V-shaped hash rate recovery.
Related: BTC price falls back to $47K as weekly close neatly tracks Bitcoin futures gap
For the uninitiated, the Bitcoin network’s computation power plunged to 84.79 million terahashes per second (TH/s) in early July from 180.66 million TH/s in late May. The drop surfaced as many miners responded to China’s crypto crackdown by either shutting down their facilities or moving their operations abroad.
But the network recovered more than half of its lost hash rate, hitting 136.92 million TH/s on Saturday, indicating that China’s direct ban did not have a prolonged effect on Bitcoin’s mining sector.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
The asset has overtaken the network’s market cap following an announcement that PayPal intends to integrate crypto. 559 Total views 2 Total shares Since PayPal announced adding Bitcoin (BTC) to its platform, the asset's market cap has exceeded that of PayPal itself. Ironic?At press time, Bitcoin holds a market cap of $239,877,416,968, just recently surpassing…
The French cybersecurity company Nigma Conseil and the Austrian Institute of Technology (AIT) have revealed to have collaborated on developing a new blockchain forensics tool. The agreement was signed on Feb. 25 to work on e-Nigma, a proposed compliance tool.E-Nigma provides its users with a way of conducting due diligence investigations in response to Know…
The funds returned so far has come in the form of Ether (ETH), Binance-pegged ETH and BNB ($14.2 million). 139 Total views 3 Total shares A quick response from a number of blockchain security companies has helped facilitate the return of around 70% of the $23 million exploit of decentralized exchange (DEX) aggregator Transit Swap.The…
CEO Brad Garlinghouse said O’Connor’s experience would help Ripple build “a more inclusive financial system.” 337 Total views 3 Total shares Sandie O’Connor, the former chief regulatory affairs officer at banking giant JPMorgan, is joining Ripple’s board of directors.According to a Ripple blog post published yesterday, O’Connor will “provide counsel on key government relations and…
Blockchain validation platform VeriBlock produced almost 25% of on-chain Bitcoin (BTC) transactions in 24 hours July 14, the company confirmed on social media.VeriBlock, which uses its own ‘Proof-of-Proof’ protocol to validate blockchains using Bitcoin’s computing power, launched its mainnet implementation in March. The service allows miners to compete for block rewards on altcoin blockchains, while tapping…
It appears EOS holders are extremely dissatisfied with the direction the network has headed. 1288 Total views 16 Total shares Members of the EOS ecosystem, a blockchain designed to power decentralized applications, or DApps, are voicing their dissatisfaction with former developer Block.one. As a result, they have formed their own organization and elected new leadership…
"We’ve done a lot of the upfront thinking to consider how we might pay employees should they ask to be paid in Bitcoin," said Ned Segal. 1021 Total views 10 Total shares Twitter may be the next major company to purchase Bitcoin, according to the tech firm's chief financial officer.In an interview on CNBC’s Squawk…
The regulator is throwing the book at Beaxy and people associated with it on charges of unregistered securities offering and failing to register in a number of capacities. 313 Total views 74 Total shares Own this piece of history Collect this article as an NFTBeaxy suspended operations on March 28 “due to the uncertain regulatory…
Bangladesh is now on the blockchain map. 1408 Total views 22 Total shares Standard Chartered PLC, a British multinational banking and financial services company headquartered in London, England, has successfully leveraged blockchain technology to conduct Bangladesh’s first blockchain trade transaction, according to Newage on August 16. The Standard Chartered bank issued a Letter of Credit (LC)…