Does the Bitcoin Price Past Equal BTC Future Value? New Canaccord Chart Shows $20,000 in Crosshairs
Ever since bitcoin experienced its first slump following the heights it reached in 2017, there has been constant speculation about when and if it can ever reclaim its glory. Even as a bear market took place in 2018, there has still been talking about bitcoin getting back to its $20,000 peak of 2017 or even surpassing it in the long run.
Now, a look at the recent trends in bitcoin price could serve as an indicator that bitcoin will indeed get back to $20,000. The month of February, for example, saw bitcoin close at a value of around $3,800 per coin, breaking a six-month trend of continuous losses.
Market watchers now say that this follows a similar pattern that, if correct, predicts that bitcoin will soon get back to its previous highs. This is based on a chart created by Canaccord Genuity Capital that maps our price patterns from 2011-2015 and 2015-2019.
“Looking ahead, if bitcoin were to continue following the same trend as in the years 2011-2017, the implication is that bitcoin would be bottoming approximately now and would soon begin climbing back towards its all-time high of ~$20,000, theoretically reaching that level in March 2021,”
wrote Michael Graham and Scott Suh of Canaccord Genuity Capital Markets.
Should this Information be accurate, those who are securely holding on to their bitcoin will be in a lot of luck. The chart also claims that the bitcoin price market follows a four-year pattern, which mirrors the same time period during which mining rewards are cut in half.
The increase in the institutional investment in crypto, as well as its widespread adoption, could also serve as a catalyst to revive the market.
“Although there are different dynamics at play this time around compared to four years ago, we point to several tangible catalysts that could propel the price of bitcoin in 2019. For one, institutional custody solutions are expected to launch in the first half of 2019, led by Fidelity Digital Assets,” wrote Graham and Suh.
While all this, like the usual discussion surrounding bitcoin, is all but speculation, it would be remarkable if the market indeed follows the four-year pattern. Even then, the $20,000 peak that bitcoin has seen so far could only be the beginning. After all, there are those that are convinced that it will swell to a million dollars at some point in time. Either way, only time will tell.