thecryptobasic.com
While Bitcoin flirted with the $100K range last week, coming within touching distance, market observers have highlighted a similar occurrence around key psychological levels in history.
On November 22, Bitcoin reached an all-time high of $99,800, just $200 away from hitting $100,000, a milestone that the crypto community and the global finance space have been anticipating since the last cycle.
However, in the two days that followed, Bitcoin traded in a tight range between $99K and $98K. The bears ultimately took control, and Bitcoin broke below this range, hitting a low of $90,700 by Tuesday.
With anticipation for $100K slightly dampened, analysts have revisited historical performance, suggesting that Bitcoin may just be gathering stronger momentum to surpass the $100K level.
How Bitcoin Initially Missed $20K But Rebounded Stronger
Specifically, they cited the 2016/2017 cycle when anticipation was high for Bitcoin to reach $20,000, but it initially failed to hit the mark. Notably, this happened in December 2017.
Bitcoin started the month at $9,694, but eventually rallied 89% to $18,353 seven days later. However, it lost momentum and couldn’t continue climbing to $20K. After hitting $18K on December 8, 2017, Bitcoin dipped to $13,226 the next day.
But then, just two weeks later, Bitcoin broke through the $20K level, reaching a cycle peak of $20,089 before entering a bear market, where it eventually tanked to around $3K.
Will History Repeat?
Now, market participants believe a similar scenario is playing out with the $100,000 psychological price point.
However, unlike in 2017, the market is still in the halving year, with the post-halving bull run only in its early stages, compared to 2017, when it was at the height of the post-halving rally.
Notably, Bitcoin’s failure to surpass $100K last week is attributable to resistance from traders seeking to sell Bitcoin at this psychological level to take profits. However, analysts like Peter Brandt have criticized this reasoning.
With the next anticipated rebound, analysts expect Bitcoin to break well beyond $100K. Popular forecasting suggests it could double to $200K or beyond by 2025 before a bear market sets in.
At press time, Bitcoin is quickly recovering from the $90K dip, reaching $93,350.