The enigmatic world of bitcoin continues to captivate investors with its price fluctuations. However, recent analysis from Cryptorphic, a leading crypto analyst, suggests that the future could be brighter than the recent declines might indicate.
Your prediction? bitcoin will reach a staggering $156,000 on May 27, 2025.
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The Halving Effect: A Historic Catalyst
Cryptorphic's prediction depends on a historical phenomenon known as bitcoin-halving-4843769″ target=”_blank” rel=”nofollow”>reduce by half. Every four years, the number of Bitcoins rewarded for mining new blocks is halved. This, in theory, reduces the supply of new coins entering the market, potentially driving up the price of existing ones.
Their analysis examines past halvings and shows a fascinating trend. After the first halving in 2012, bitcoin” target=”_blank” rel=”nofollow”>The price of bitcoin it shot up a mind-blowing 8,300%. The second halving in 2016 saw a more modest but still impressive increase of 288%. The most recent halving in 2020 caused a 540% increase in one year.
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twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin It could reach $156,000 before May 27, 2025!
These green boxes represent the price action after twitter.com/hashtag/btc?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#btc Halvings. We have never seen a red year after a halving.
bitcoin halvings are major events, here are the percentages of bitcoin price increase one year after each halving… pic.twitter.com/QEmNN8OuP2
– Cryptorphic (@Cryptorphic1) twitter.com/Cryptorphic1/status/1795082214813884747?ref_src=twsrc%5Etfw” rel=”nofollow”>May 27, 2024
A golden ticket or fool's gold?
Following the fourth halving last April, Cryptorphic predicts a potential price increase of almost 130% for the following year. This translates to a price of between $115,000 and $156,000.
Despite the bullish outlook, the analysis recognizes the current short-term volatility. bitcoin is currently trading below its high, reflecting a recent 5% drop. However, Cryptorphic identifies a technical indicator, the “inverse head and shoulders” pattern, suggesting a possible price breakout.
A broader view of the market
The analyst's perspective does not shy away from presenting contrasting points of view. Others take a more nuanced approach and express cautious optimism about the near-term trajectory. They recognize the decreasing bearish scenarios and believe that the market could be in an earlier bullish phase compared to Cryptorphic's prediction.
This suggests the possibility of further gains even before 2025, although both analysts emphasize the importance of a measured approach to risk management.
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During the past year, crypto/bitcoin/” target=”_blank” rel=”nofollow”>bitcoin is up 144%, demonstrating significant bullish momentum. This impressive performance has allowed it to outperform 58% of the top 100 crypto assets, as well as surpass ethereum in gains. Such a strong increase underlines the asset's strong position in the market and investor confidence.
Currently, the asset is trading above its 200-day simple moving average, indicating a sustained uptrend. Furthermore, its high liquidity, backed by a significant market capitalization, further increases its attractiveness to investors.
Featured image by Revolutionized, TradingView chart
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