Markets #MarketExperts

Bitcoin's Breakout to New Highs Could Be Near, Past Market Cycles Suggest

The top crypto's current correction from the March peak resembles the action of 2016 and 2020 during the previous bull runs, which resolved in new all-time highs in the latter months of the year.

•$BTC Bitcoin could be heading for a breakout to new record prices, based on previous cycle's price action.

• Historical data suggests price could potentially rise to $108,000 to $155,000.

Bitcoin (BTC) has been stuck in a grueling, multi-month correction since hitting $73,000 in March, convincing many investors that the market top is already behind.

However, the recent price action resembles the top cryptocurrency's behavior during the previous two market cycles, which eventually resolved to the upside towards the end of the year. This suggests that a breakout to new record prices could happen in the next months.

Despite bitcoin's anemic performance since March, it's still up 290% from its November 2022 market bottom, in line with the previous two bull markets during the same period, Glassnode data shows. At this point in the four-year cycle, BTC advanced 309% during the 2015 to 2018 bull run and 251% in the 2018 to 2022 cycle.

On both occasions, the periods with the steepest rallies came later in the cycle on the way to the market top. If BTC stays within the range of its previous two cycles until the end of the year, it could rise by 600% to 900% from its cycle low, potentially reaching a price between $108,000 to $155,000.

Typical halving year correction #halvinngbitcoin

This year's corrective phase also mirrors the price action of bitcoin's previous two halving years.

BTC reached a mid-cycle peak in 2016 and 2020, followed by months of sideways action to break higher in the latter months of the year, well-followed pseudonymous crypto analyst CryptoCon noted.

The halving event happens automatically every four years and reduces by 50% the issuance of new tokens, which is widely believed to impact bitcoin's supply to create scarcity.