Lark Davis breaks down Bitcoin’s rally potential by examining past bull cycles and recent developments. Drawing comparisons to Bitcoin’s explosive 2016 and 2020 breakouts, Davis outlines how Bitcoin historically experiences rapid gains after breaking previous highs, followed by notable corrections. His analysis suggests that if history repeats itself, Bitcoin could be in for another massive rally, but with some predictable challenges along the way.
Historical Breakouts: 2016 and 2020
In his analysis, Davis first looks back at the 2016 and 2020 market cycles, noting the impressive surges following Bitcoin’s breakout. In 2017, Bitcoin gained 154% over eight weeks, while in 2020, it saw a 115% rise in just four weeks. Both times, the rally was intense, but corrections of 30-40% soon followed. These historical patterns, he suggests, could offer valuable insight into what we might see in the coming weeks or months as Bitcoin continues its current upward trend.
What’s Driving This Bull Run?
Davis emphasizes that recent billion-dollar inflows from Wall Street firms are adding significant buying pressure. Just recently, a billion dollars of Bitcoin was purchased in a single day, absorbing a month’s worth of Bitcoin mining production. This unprecedented demand, Davis notes, is creating a “supply crisis,” which may speed up Bitcoin’s rise in price faster than many expect.
Bitcoin To Hit $150,000 – or Even Higher?
Based on previous bull market trends, Davis speculates that Bitcoin could potentially reach $150,000 this cycle if it gains around 100% from its current levels. However, he cautions that we may see major pullbacks, similar to those in past cycles. Davis even believes that Bitcoin could reach as high as $200,000, although he acknowledges that many factors could affect this outcome.
Peter Brandt is also optimistic about Bitcoin’s future, even predicting it could one day reach $200,000 and become a global standard of value, making other assets appear volatile by comparison. However, he emphasizes that for now, corrections are a regular part of Bitcoin’s journey.
Advice for Investors
Interestingly, Davis warns that overly bullish events, like a U.S. strategic Bitcoin reserve announcement, could ironically trigger a market peak or “top signal.” Such events may encourage large holders to cash out, causing a market cooldown.
Notably, Bitcoin has majorly surged due to Donald Trump’s victory and pro-crypto leaders in the U.S., alongside favorable global economic shifts from U.S. Fed rate cuts. Institutional investors are heavily backing Bitcoin, with short-term holders also accumulating aggressively. Recent data shows U.S. spot Bitcoin ETFs have seen over $7.9 billion in net cash flow in just the past four weeks.
