It was announced this morning that Coinbase has officially applied for an IPO. Subsequently, the price of Bitcoin surged above $50,000.
However, a fractal of the last bull market cycle that started in early 2017 showed a different situation. The number might just be the midpoint of where the cryptocurrency will be processed in just two months.
Here’s a look at the mid-cycle similarities and the roadmap that will propel the price per BTC to $100,000 and beyond in the next few months.
Bitcoin volatility has been increasing, starting with an explosive move from $10,000 to $50,000 in a matter of months. The all-out repricing of cryptocurrencies comes as institutional investors scramble to buy what they can get from the scarce crypto asset.
With just 21 million tokens and a market cap of just under $1 trillion, Bitcoin is sure to grow over the long term. On the other hand, cryptocurrency has become particularly attractive in an economic environment where growth is an issue.
But when Bitcoin price discovery takes place, volatility will increase. Because of this, the cryptocurrency has lost 20% of its value in a single day over the past few weeks. Since Bitcoin is priced at $50,000, 20% volatility means $10,000. This is a huge number compared to the $1000 numbers of the past.
Beware of this fractal
During the recent surge, the price action closely resembled the current market volatility. Let’s make a comparison between early 2017 and mid-2017 when Bitcoin was in the four figures. The similarities are amazingly clear.
If the same path is followed, Bitcoin could see a crash before recovering more than twice as much. Price action will take place in a fast form. Bitcoin will increase its price to $75,000 in April and then to $100,000 in May.
It’s also worth noting that the path that follows the fractal continues from there. According to Fractal, the cryptocurrency falls by just $2,000 per BTC.
The cryptocurrency has posted another 10x gain since the peak price action ended. If the fractal continues one-for-one from the current levels, it could price any bitcoin to $1 million before the peak of this cycle.