The price of the flagship cryptocurrency could surge to the $156,000 mark by May 2025, according to an analyst whose prediction is based on historical BTC price action after its halving events.
In a post shared on the microblogging platform X (formerly known as Twitter), popular pseudonymous cryptocurrency analyst Cryptorphic noted that Bitcoin hasn’t had a year with a price correction after a halving event, adding halvings are “significant events.”
A Bitcoin halving sees the coinbase reward miners receive per block found get cut in half, effectively reducing in half the amount of new supply entering the market. The analysis revealed a compelling trend. Following the first halving in 2012, Bitcoin’s price skyrocketed a phenomenal 8,300%.
The second halving in 2016 witnessed a more moderate but still impressive increase of 288%. The more recent halving in 2020 sparked a 540% surge within a year, while the latest halving occurred in April of this year.
Taking all of this into account, the analyst suggested that the price of Bitcoin could skyrocket 127% from its level at the halving to between $115,00 to $156,000.
The analysis acknowledges the current short-term volatility, with Bitcoin currently trading below its peak after a recent dip. However, Cryptorphic identifies a technical indicator, the “inverse head and shoulders” pattern, suggesting a potential price breakout in the near future.
An inverse head and shoulders pattern is a chart pattern that occurs when the price of an asset falls and rises three times to form a lower pattern that’s interpreted as the “head” between two higher lows seen as the “shoulders.” It’s typically a signal of a shift from a bearish to a bullish trend.
The prediction comes shortly after cryptocurrency investment products saw over $1.05 billion in inflows over the past week with Bitcoin products seeing $1.012 billion and Ethereum focused products seeing $35.5 million of inflows.
Meanwhile, products shorting the flagship cryptocurrency Bitcoin saw outflows of $4.3 million. These flows occurred shortly after the SEC approved applications from major stock exchanges to list spot Ether exchange-traded funds (ETFs) clearing the path for these products to start trading later this year.
The approval marks a significant shift for the SEC, which has historically been cautious about cryptocurrency and had been investigating whether to deem the second-largest cryptocurrency a commodity or a security.
Featured image via Unsplash.
