Bitcoin (BTC) could push prices as high as $250,000-$350,000 by the end of 2021, indicating a long-term fractal.
The bullish setup was first discovered by pseud analyst Beat Harington, and was inspired by Bitcoin’s impressive rise each time after the halving when the miner’s reward halving. Analysts view the halving as a bullish event that reduced the supply of newly recovered Bitcoin.
Harington noted that bitcoin prices rose more than 600% after the first two halving events in 2012 and 2016, measured by the so-called resistance/support (R/S) line, as shown in the chart below.
Bitcoin price dynamics after the first two halving events. Source: BuyBitcoinWorldWide, PlanB, Bit Harington
The line is a barrier while the price is rising. Traders tested it for a break several times before they could beat it and set a new record. When prices started correcting, they eventually ended up on the same line.
In 2020-2021, Bitcoin followed a similar upward trajectory, rising from under $4,000 to over $60,000. Once again, Harington identified the $60,000 level as the same R/S line that prevented the trades from making a clear bullish breakout.
The analyst suggested that Bitcoin will break out of it and rise to a new record price.
Cointelegraph Markets analyst Mikael van de Poppe responded to Harington’s fractal theory, adding that this would push bitcoin prices in the $250,000 to $350,000 range.
However, he noted that such a sharp jump could lead to a sharp correction that could push bitcoin prices to $65,000, which is roughly C$60,000 at Harrington.
Do the basic principles agree?
Bitcoin rose sharply after falling below $4,000 in March 2020, mainly due to the loose monetary policy of global central banks aimed at curbing the economic slowdown caused by the COVID-19 pandemic. The cryptocurrency closed the year at around $30,000 when retail and institutional investors realized it was a safe haven from a weaker US dollar and inflation fears.
So far, the bitcoin price has crossed $65,000 in 2021 before adjusting to below $50,000. In its lowest year (since the beginning of the year), the pair traded at $29301 on Coinbase. His loss resulted from the sudden ban on all cryptocurrency activities in China (including mining) and Elon Musk’s annoying tweets about Bitcoin’s growing carbon footprint.
Bitcoin price calculations throughout history. Source: TradingView
The balance of BTC in the stock market has fallen to its lowest levels recently
The price of the cryptocurrency exceeded $30 thousand, as the reserves on the exchanges fell significantly.
Blockchain data analytics service CryptoQuant reported that Bitcoin balances on cryptocurrency exchanges fell to around 2.37 million BTC last week, the lowest level in more than a year.
Bitcoin is held on all exchanges. Source: CryptoQuant
The drop in bitcoin reserves reflects traders’ intentions to hold onto the cryptocurrency instead of exchanging it for altcoins and fiat currencies.
