Bitcoin’s projected rally to $125K by the end of 2024 aligns with its historical pattern of substantial price increases following mining reward halvings.
Matrixport, a crypto services provider, initially adopted a bullish stance on bitcoin (BTC) in late 2020. Their latest prediction suggests that the leading cryptocurrency could experience a significant surge, potentially reaching as high as $125,000 by the close of 2024.
The forecast provided by Matrixport is grounded in data analysis, revealing a prolonged bull market characterized by a remarkable increase in market value. According to their findings, this upward trend typically emerges once prices confirm the conclusion of a bear market by establishing a 12-month high, a milestone not witnessed in at least a year.
In late June, the signal indicating the end of a bear market was activated as bitcoin prices surpassed $31,000, marking the highest point since June 2022. This signal has been observed in previous instances, including August 2012, December 2015, May 2019, and August 2020, each time leading to subsequent price rallies in the following years.
Markus Thielen, the head of research and strategy at Matrixport, emphasized in a report that on June 22, 2023, bitcoin achieved a new one-year high, signifying a significant milestone. Thielen stated that historically, this particular signal has denoted the conclusion of bear markets and the commencement of new cryptocurrency bull markets.
Markus Thielen added that if past trends are indicative, bitcoin prices have the potential to surge by +123% over a span of twelve months and by +310% over eighteen months. These estimations are based on the average returns observed from signals triggered in 2015, 2019, and 2020. As a result, bitcoin’s value could reach $65,539 within twelve months and soar to $125,731 within eighteen months.
However, Thielen disregarded the 2012 signal and the subsequent remarkable price surge of 5,285% in 2013, referring to it as an “epic, out-of-proportion” bull market. While acknowledging the historical significance of that event, Thielen focused on the more recent signals and their associated average returns.
Bitcoin recently set a 12-month high for the first time in at least a year. The signal has historically indicated the end of bear markets and the start of new crypto bull markets. (Matrixport)
Matrixport’s perspective aligns with bitcoin’s historical pattern of experiencing significant upward trends within 12-18 months following mining reward halvings.
The upcoming fourth halving, expected to occur in March/April next year, will reduce the new coins rewarded per block from 6.5 BTC to 3.25 BTC. This event has historically been associated with bullish movements in bitcoin’s price.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
Follow Cryptos Headlines on Google News
Join Cryptos Headlines Community
