Bitcoin hasn’t fared too well over the past week; after hitting $10,000 last weekend, the price of the bitcoin dropped, tumbling from that key psychological resistance to a price as low as $8,450 (TradingView data) – a drop of 15%.
While several analysts are hinting that this substitute is a precursor to a deeper correction, a growing number of commentators claim that bitcoin is on the verge of rallying 100% (or even more) towards the previous all-time high of $20,000.
What’s even more interesting about these predictions is that a few traders anticipate such price action to transpire over a few months, not the years it had taken to bitcoin to move out of a bull market in 2014-2015.
Could Bitcoin Hit $18,000 In the Coming Months?
Despite the fear floating around the crypto industry at the moment due to last week’s severe correction, Polar Hunt recently shared the below analysis.
The analysis, which attempts to compare the price action between the market structure in 2014-2016 to the market structure, suggests that Bitcoin is currently “holding up nicely” against the previous market cycle.
Bitcoin following the previous market cycle to T, per Polar Hunt’s charts, will mean the asset surging to $18,000 – a gain of over 100% from the current price of $8,550 – by the time of the block reward reduction in May 2020.
While this might sound overly optimistic, the below chart shows eerie similarities in the market structures between the previous market cycle and the current, similarities that Polar Hunt suggests adds credence to his bullish argument.
Far From the Only Bull
Polar Hunt is far from the only analyst to have suggested that Bitcoin will rally close to $18,000 in the coming months.
Speaking to CNBC in an interview released two weeks ago, Mike Novogratz – the CEO of Galaxy Digital and a former partner at Goldman Sachs – contended that Bitcoin might trade around $20,000 “literally by the halving, which is in a couple of months.”
While he did not cite catalysts for such a “frenzied” move in that interview, the investor has previously cited the central bank policy, the halving, and institutional involvement as crucial catalysts for bitcoin growth in the future.
Also, Financial Survivalism – the trader who called Bitcoin’s price action in January weeks in advance – suggested in a TradingView post entitled “Why I believe Bitcoin will retest All-Time Highs by July 1, 2020″ that bitcoin will trade at or over $20,000 by July 1. He cited a confluence of technical indicators to back his point.