Bitcoin is in a bull market and anyone who understands the potential of cryptocurrency knows that much higher prices are ahead in the short and long term. But how high would the prices actually be if the cryptocurrency price movement mimicked the epic 2017 rally, tick by tick?
An analyst at Ark Invest has created a hypothetical chart that shows what could come if a similar course is followed. And according to the graph, at the peak of the current cycle, Bitcoin price would be around $ 390,000.
The bull trend is emerging, but can it keep up with the record-breaking 2017 rally?
If bitcoin starts trending – regardless of direction – it’s a tough trend. While the downtrends start strong and end in a similar fashion, the bull markets often have persistent momentum that drives the asset at significantly higher prices each market cycle.
Where the cryptocurrency is in its current market cycle is up for debate, but thanks to the asset’s hard-coded block reward, which is halved, the cycle can be predicted with some accuracy.
Related reading | The GMI model estimates Bitcoin fair value at $ 300,000 through October 2021
Where bitcoin is now could be somewhere before what the creator of the popular stock-to-flow model says is the “point of no return.” At this point in 2017, the top cryptocurrency rose from around $ 1,000 to $ 20,000, making it a household name.
According to a chart shared by Ark Invest analyst Yassine Elmandrja, this time around, Bitcoin could hypothetically hit $ 390,000 per BTC before hitting the high.
What would the linear chart look like if 2017 repeats itself? Source: Ark Investment Management, LLC
Bitcoin Bull Run hits the final stretch, but the high is projected at $ 390,000
What is not pointed out, however, that if the same path is followed and Bitcoin is somewhere in May 2017 according to the graphic, there are only a few months left of the current bull run.
It also means that analysts expect the Bitcoin price to rise more than 10-fold in the next few months as investors scramble to buy out the remaining supply.
Related reading | Sats Stats: Bitcoin will grow 37x in four years from today
Bitcoin has played about 10 times from Black Thursday so far, but can it still 10 times from here? Anything is possible given the supply shortages and the sudden influx of institutional capital that may be coming soon.
The chart shared by the analyst may seem ridiculous, but as shown by the 2013 high, which barely represents a slip on the chart, the same is possible again.
The same trajectory, but on a logarithmic scale | Source: BTCUSD on TradingView.com
Looking at the same graph on a logarithmic scale reveals a more realistic representation of the same graph with parabolic curves in support of the trajectory that leads the price per BTC to the implied hypothetical target.
Could Bitcoin really hit $ 390,000 per coin before it hits its peak?
Featured image from deposit photos, charts from TradingView.com