Bitcoin Bulls Take Note: This Bull Market May Peak on January 17!

This year, cryptocurrency has undoubtedly been one of the most 'bullish' investment categories: According to CoinMarketCap, the total market cap of cryptocurrencies has risen from $1.65 trillion at the beginning of the year to $3.7 trillion, with Bitcoin's price soaring from $37,700 last December to a historic high of $106,000.

Will Bitcoin Peak in Two Weeks?

According to data from research firm K33, Bitcoin is expected to reach a historic high in mid-January, just before the inauguration of U.S. President-elect Donald Trump.

K33's statistical analysis indicates that, on average, there are 318 days between the first peak and the last peak of a cryptocurrency cycle. The current cycle's initial peak occurred on March 5 of this year, suggesting that the final peak of the current cycle may appear on January 17 of next year, coinciding with Trump's inauguration on January 20.

In fact, Trump's election victory was a catalyst for Bitcoin's significant surge at the end of this year. As the 'most cryptocurrency-supportive president in history,' Trump has made several commitments favorable to Bitcoin—such as incorporating Bitcoin into the national reserves—factors that have helped Bitcoin's price break the six-figure milestone for the first time.

However, K33 points out that as the time for Trump to officially take office approaches, cryptocurrency investors may find their hopes dashed:

"The market is likely to have unrealistic expectations about the speed of policy changes and to overestimate the impact of the inauguration... We expect the current upward trend (in Bitcoin) to peak in mid-January before Trump's inauguration and believe that this area is a natural zone for reducing risks and realizing short-term profits," wrote K33 research director Vetle Lunde in a report in December.

Another technical analyst familiar with Bitcoin's historical cycles, Adrian Zduńczyk, shares similar views. He has previously warned to prepare for the upcoming correction in Bitcoin. He expects the price adjustment for Bitcoin to begin between the end of January and February, with a range of 15% to 30%, before potentially entering another bull market.