In a recent turn of events, Bitcoin (BTCUSD) dropped to a low of $103,450, eradicating approximately $1 billion in leveraged positions within 24 hours. This sudden decline triggered a rush of sellers, but Bitcoin quickly found its balance and bounced back to $104,400.
Crypto analyst Klarch, known for his in-depth studies, had predicted this setback. He suggests it’s merely a breather before Bitcoin lurches towards new record highs. Klarch’s observations reveal a recurring pattern in Bitcoin’s behavior following each halving.
After the 2016 halving, Bitcoin saw a surge of about 280% a year later. Similarly, it soared approximately 550% in 367 days following the 2020 halving. Presently, Bitcoin has only risen around 70% in the 416 days since the last halving. Klarch emphasizes that previous cycles showed accelerated growth after a sluggish start, indicating potential for further expansion.
The importance of these percentages lies in their predictive value. If Bitcoin continues to follow its historical trend, significant gains could be imminent. Blockchain data, including trading volumes and on-chain addresses reaching new highs, supports this hypothesis.
Bitcoin reached a record-breaking $112,100 on January 20, then climbed to $111,980 on May 22. Klarch interprets these milestones not as an end but as precursors to an even higher peak. According to his chart analysis, each cycle experiences several peaks before reaching its ultimate high.
While Klarch doesn’t provide a specific date for a new peak, he implies that Bitcoin’s potential is far from exhausted. He observes that a series of all-time highs usually coincides with growing positive sentiment. As FOMO sets in among traders, the price often skyrockets.
Klarch attributes the driving factors behind Bitcoin’s price to increasing demand and liquidity in the crypto market. Steady purchases by institutions and the introduction of US Bitcoin spot ETFs have reduced Bitcoin’s availability on exchanges. Major players like Michael Saylor’s Strategy continue to buy, further limiting supply. Klarch suggests that this trend could push Bitcoin towards an impressive $180,000, approximately a 75% increase from current levels.
Asset manager VanEck has proposed a similar target, reinforcing Klarch’s predictions. If institutional investment continues to grow and retail interest remains high, Bitcoin’s price could maintain its upward trajectory. However, any halt in ETF inflows or unexpected shifts in global markets could alter this prediction.
