The focus of many Bitcoin (BTC) investors or traders is often in the short term price performance of the premier digital currency. Many do not know that macroeconomic events and principles also affect the longer term price prospect of the cryptocurrency.
For the past 7 days, the price of Bitcoin has been hovering around a low of $43,861.45, and a high of $47,998.10 with the agenda to break this price range in a bid to retest its previous All-Time High (ATH). The resistance of the price from breaking out from this range can be attributed to the occasional bear action, which always come in the form of profit taking or outright sell-offs amidst a price surge.
In the past 12 months, Bitcoin has recorded a 265.5% growth, and the huge part of this growth was fueled the accumulation of the nascent asset class by institutional investors, with a complementary stack up from retail holders. The current price of Bitcoin at $45,096.10 is about 29.915 below its ATH, and many investors and market observers now wonder what is next for the cryptocurrency amidst this repressive growth.
Bull Market to Run into 2022
While Bitcoin might have stayed stagnated per its price growth in the past days, on-chain analysts, Willy Woo believes the bull run is not over yet. Infact, he believes Bitcoin bulls are in for a ride until 2022.
Drawing on the macro-economic context of the coin, Woo says investors are still looking to push prices up their peak accumulation points, which likely is poised to form a new bottom for imminent price liftings. With a pattern always recorded following Bitcoin’s halving events which appears to regulate the growth rate of the coin, Woo says Bitcoin will likely break free from this trend in the coming months.
In a macro cycle context, long term investors are still climbing towards their peak accumulation, which marks bottoms. Early signs to me that the bull market may continue into 2022 and BTC is in the process of breaking free from the 4 year internal cycle from the halvenings.
— Willy Woo (@woonomic) August 18, 2021
How High Can Bitcoin Climb
From the level Bitcoin is now, the previous ATH is in itself an ambitious price target for the rest of the year. However, several analysts have been predicting a massive price highs for Bitcoin to close the year.
Amongst the most bullish is PlanB, the inventor of the Stock-2-Flow model. According to him, the worse case price scenario for Bitcoin based on his model is $135,000 by December 2021.
Bitcoin is below $34K, triggered by Elon Musk’s energy FUD and China’s mining crack down.
There is also a more fundamental reason that we see weakness in June, and possibly July. My worst case scenario for 2021 (price/on-chain based): Aug>47K, Sep>43K, Oct>63K, Nov>98K, Dec>135K pic.twitter.com/hDONOVgxH1
— PlanB (@100trillionUSD) June 20, 2021
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.