Bitcoin Bull Run Gets Accelerated: Factors That Show This
Breakout of Bitcoin above $10,000 has given rise to promising
Breakout of Bitcoin above $10,000 has given rise to promising predictions from crypto enthusiasts. In particular, Nicholas Merten, author of the YouTube channel DataDash, is convinced that Bitcoin is on the cusp of an explosive rally and has named several aspects that confirm this. Is it a bright streak for Bitcoin, and it is only a matter of time before reaching a price of $ 100,000?
Cyclical repetition of the 2017 bullish pattern
Nicholas Merten convinces that Bitcoin is now repeating the scenario of market behavior, which we already witnessed at the end of 2017 when Bitcoin renewed its historical price maximum. In his forecasts, he goes against the concept of Bitcoin price growth after another halving. Merten convinces that the Bitcoin rally is the logical conclusion of the so-called expansion cycles. A feature of this metric is the increase in the duration of each new cycle by 11-13 months.
Bitcoin hit an all-time high of nearly $20,000 at the end of the third cycle, which lasted from November 2013 to December 2017. According to Merten’s concept, Bitcoin is now in its fourth expanding cycle, which ends around November 2022.
Thus, Bitcoin’s breakthrough of the $10,000 milestone on June 26 may indicate a starting point for a rally, which, according to Merten, could end in an extremely high upward spike. He notes:
“The fourth cycle of Bitcoin expansion could end with a new all-time high of $100,000. “
Limited emission of Bitcoin
Merten’s bullish predictions also base on the “stock-flow” model, according to which, when the volume of issued Bitcoins decreases, a positive deficit is created, which is the driver of the price of the crypto asset upward. Although this model received criticism from members of the crypto community after the halving in May 2020, Merten is rather calm about the absence of the long-awaited price breakout upwards. He notes:
“We have seen before how unpredictable Bitcoin can be and how high it can jump in price just one month before the end of the cycle. In particular, a similar rally took place in November 2017, so I see no reason for serious concern about the stagnation of the Bitcoin price. “
Growth in the number of Bitcoin hodlers
Over the years, a so-called Bitcoin investment strategy called HODLing has been gaining popularity. According to this model, people buy Bitcoins and “freeze” them on their crypto-addresses to subsequently sell them at an inflated price. As the events of the March 2020 show, most hodlers did not capitulate to the threat of a record Bitcoin crash.
“People are holding Bitcoins and not selling them because they believe in making a profit in the long run.”
Thus, Merten is convinced that in combination, these factors are a powerful catalyst for Bitcoin bull runs and fixing new all-time highs shortly.