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Bitcoin (BTC) has recently faced resistance at the $70,000 mark, yet market anticipation is growing that the cryptocurrency will maintain its bullish momentum, targeting a record high.
Notably, an analyst known by the pseudonym Stockmoney Lizards observed that Bitcoin’s recent market activity suggests the post-halving correction is nearing its conclusion.
As the crypto market approaches the end of August, analysts believe that the second half of September or October should initiate the next leg up for Bitcoin, leading to a major price surge with projections targeting a year-end price between $100,000 and $110,000.
Parallels with 2020: A blueprint for the 2024 rally
Stockmoney Lizards’ analysis draws striking parallels between Bitcoin’s current price action in 2024 and its performance in 2020. Both periods are marked by significant parabolic rises, followed by mid-cycle corrections before resuming their upward trajectories.
In the first parabolic phase in 2020, Bitcoin rose from approximately $3,800 in March to over $10,000 by June, setting the stage for a further rally post-COVID correction.
Similarly, in 2024, the first parabolic phase occurred early in the year, driving the price from below $20,000 to nearly $70,000 by the summer before encountering a significant correction dubbed ‘Black Monday.’
The mid-cycle correction in 2020, known as the ‘COVID crash,’ was a brief but sharp pullback that tested key support levels before Bitcoin resumed its bullish trend. In 2024, the ‘Black Monday’ correction mirrors this pattern, albeit at a higher price point, with Bitcoin’s price pulling back to the $25,000 to $30,000 range.
Following the mid-cycle correction in 2020, Bitcoin entered its second parabolic phase, skyrocketing to its then-all-time high of approximately $42,000 by early 2021.
Analysts suggest that a similar pattern is expected in 2024, with the second parabolic phase projected to begin in late September or early October, potentially driving the price to the $100,000 to $110,000 range by the end of the year.
Key indicators and market sentiment
The alignment of historical patterns with current market dynamics strongly supports a bullish outlook for Bitcoin in the coming months.
Key indicators, such as the resumption of upward momentum following the post-halving correction, coupled with increasing institutional interest and adoption, support the case for a significant year-end rally.
The current correction phase has tested crucial support levels, particularly around $25,000, which has held firm, indicating strong buying interest. Market observers suggest that a breakout above $70,000 could trigger the next parabolic move, potentially pushing Bitcoin towards the $100,000 to $110,000 range by the end of the year.
This bullish outlook is further strengthened by a combination of macroeconomic factors, including inflation concerns, the weakening of fiat currencies, and the increasing perception of Bitcoin as a digital store of value.
Geopolitical tensions and decisions by the Federal Reserve also play a significant role. The psychological impact of approaching a six-figure price point could further ignite speculative interest and drive the price higher.
Bitcoin price analysis and the road ahead
As Bitcoin recently rose to $64,234, marking a 5.1% gain in the last 24 hours with an 8.3% gain over the past week, the market is closely watching whether Bitcoin can break out and initiate the next phase of its bull run.
With September giving way to October, the focus will be on Bitcoin’s ability to sustain its recovery and push through the $70,000 resistance level.
If historical patterns hold, Bitcoin could be on the brink of a major rally, potentially marking a new chapter in its price history. A move towards $100,000 to $110,000 by the end of 2024 would reaffirm Bitcoin’s status as a key asset in the global financial landscape.
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