Following the tough conditions of last month, the crypto markets appear to be recovering, with Bitcoin leading the rally. Some market watchers asserted that the gains of last weekend lacked a concrete foundation and would be dumped shortly. Notwithstanding, the rallies have persisted, and, most recently, a notable analyst has disclosed a bullish metric that is likely to see Bitcoin surge further.
The last time BTC saw this level, it pushed to $60k shortly after
Prominent analyst and the architect behind the renowned stock-to-flow (S2F) model, PlanB, has revealed a pattern that preceded a significant upswing in Bitcoin’s price two years back.
Taking to Twitter, PlanB (@100trillionUSD) noted, “last green candle at current level (Dec 2021) took us to $60K in 4 months 🔥,” referring to the candlestick pattern witnessed in late December 2020, when the asset’s value was similar to the current level.
After starting the year with a value of $7k, Bitcoin pushed to the $10,000 mark in June of 2020, which acted as a strong support point for the asset’s 2020 rally. The digital gold saw a surge in 2020 that attracted the attention of global financial institutions and investors, especially considering the economic downturn influenced by the pandemic.
The traditional financial system was in jeopardy, and investors sought a hedge against inflation and the global economic crisis – in their time of need, BTC was available as a safe haven. This contributed to the asset’s encouraging performance. As of 1 December, 2020, BTC was already breaking through to the $19k level and further surged to $23k on the 18th.
BTC started the next year on a favorable level, as institutional investors trooped to the asset class due largely to its performance in the previous year. Four months later, in mid-April, BTC pumped to a new all-time high of $60k.
Bitcoin is currently trading at 31% above its lowest value of this year
Bitcoin’s current price performance is oddly similar to what the crypto space witnessed in December of 2020; and this has caused some analysts to predict a similar surge this year, if the candlestick patterns are anything to go by, especially seeing as a comeback is already being staged by the markets.
PlanB sought the opinion of his 1.8M followers on what they think about this. 57% of 15k respondents noted that they believe we are currently at the low end of a normal cycle and that the current level was a “great buying opportunity” for investors. However, approximately 6,400 respondents believed “the cycles are dead, [and] the past says nothing.”
The crypto market is still looking quite good, with most assets remaining at higher levels than last month. BTC, in particular, is currently trading at $22,759 as of press time – a 31% increase from its lowest 2022 value of $17,708 on June 18. The last time the asset saw that level was in December of 2020. Influenced by the firstborn crypto, the altcoins are also looking positive – ETH currently trades at $1,604, with a 19% increase in the past week.