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An analyst has explained why Bitcoin could end 2024 in the $108,000 to $155,000 range if history repeats itself for the asset.
Bitcoin has performed similarly to the past two cycles so far.
In new mail In X, analyst James Van Straten discusses Bitcoin’s price performance from the cycle low chart over the past two cycles. As the name suggests, this chart captures the price trend between successive cycle lows. For the most recent cycle, the starting point was naturally the bottom observed shortly after the collapse of cryptocurrency exchange FTX in late 2022.
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Here’s a chart shared by Van Straten, showing how this latest cycle compared to the last two cycles so far:
As you can see, the asset’s recent price performance has been remarkably similar to what we’ve seen in the past two cycles at the same stage. “Out of all the charts, technical analysis, etc., Bitcoin’s cycle low is still the most correct,” the analyst notes. Given the similarity so far, it’s likely that the currency’s trajectory in the current cycle will continue to mimic the trajectory of the past two cycles.
Van Straten pointed out that both of these cycles ended in September with a rally. Not only that, but this was also the point at which each began a long-term rally that culminated in bullish rallies. Therefore, it is possible that Bitcoin could rally from here as well, if the current cycle continues to follow the last two.
“If Bitcoin ends the year between the previous two cycles, which it has done for most of the current cycle, we would be at the $108K to $155K level,” the analyst explains.
According to the latest Bitcoin price, a rise to the lower end of this range, at $108,000, would mean an increase of about 70%, while a rise to the upper level of $155,000 would indicate a growth of more than 144%.
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But as is always the case with historical patterns, it is not necessary for Bitcoin to show a rise in this range to end the year. However, the analyst says: “If we do not see a recession, it is entirely possible.”
In some other news, as market intelligence platform IntoTheBlock noted in X, mailTether’s stablecoin, USDT, has recently reached a new high in supply.
As shown in the chart above, the market cap of USDT has seen a sharp growth recently. With the coin now approaching $120 billion, Tether has outperformed other stablecoins.
In fact, the inflows into the stablecoin may be related to Bitcoin, as USDT capital generally tends to find its way into the native cryptocurrency. Thus, the growth to a new record high suggests that investors may have more money to buy Bitcoin than ever before.
Bitcoin price
Bitcoin price has stabilized after its recent rally as it is still trading around the $63,600 level.
Featured image by Dall-E, IntoTheBlock.com, Glassnode.com, chart by TradingView.com