The price of bitcoin in October showed signs of a double bubble similar to the 2013 bull run, and speculators tried to guess the top of the main crypto asset. On October 20, cryptocurrency market analyst Justin Bennett discussed the possible floor price of bitcoin after peaking. Bennett suggests that the end of this cycle could be between $ 207,000 and $ 270,000. Assuming bitcoin rises above $ 200,000 per coin, Bennett believes the bottom of the digital asset after an 80% withdrawal will be around $ 50,000.
“2013 Vibes”, “End of cycle goals” and the search for the elusive background
The price of bitcoin (BTC) hit an all-time high (ATH) of $ 67,017 on October 20, 2021, and since then the price has lost around 8% in value. On the same day, cryptocurrency market analyst Justin Bennett posted some information on the future of bitcoin in a blog post titled “Charting Bitcoin’s Next Five Years”.
Bennett, Cryptocademy analyst, discusses the fundamentals of the BTC market and also offers an end-of-cycle prediction. Lately, many bitcoin supporters suspect that a 2013-like double bubble is on the horizon, and the infamous stock-to-flow creator Plan B Explain Saturday that he feels the “2013 vibes”.
The blog post written by Bennett covers bitcoin’s bull cycles and explains where bitcoin (BTC) is going over the next five years. “A look at the 2.272 and 2.414 Fibonacci extensions of the last two cycles shows a target area that was hit both times,” Bennett writes.
“If we apply that same area to the current rant, we get an end-of-cycle target for Bitcoin between $ 207,000 and $ 270,000,” the analyst adds. Following the end-of-cycle outlook, Bennett says the last three bear markets following the bull cycles “produced corrections of 94%, 87% and 84% respectively.”
Bennett writes that previous data also shows that each bear market was less painful than the last. The analyst points out that these data indicate that the main crypto-asset bitcoin (BTC) is emerging as a “mature market”.
As BTC continues to mature, Bennett points out, bitcoin is “likely to see diminishing returns and bear market corrections.” The Cryptocademy analyst believes this end of cycle will be no different. “As such, I would expect the next bear market to retreat 75-80% from the peak,” Bennett details. The digital currency market analyst’s blog post adds:
If we assume that bitcoin hits over $ 200,000 this cycle and retreats between 75% and 80% in the next bear market, that would put the next cycle low somewhere around $ 50,000. And that makes perfect sense. $ 50,000 is a psychological number, and it’s very close to the high of $ 65,000 that lasted six months recently.
Predict the lowest of the lowest
Bennett’s prediction follows the recent bitcoin price model developed by Will Clemente. Blockware Solutions senior analyst Will Clemente tweeted about a new bitcoin price model called the “Illiquid Supply Floor” in mid-September. “Presenting: ‘Illiquid Supply Floor,” Clemente tweeted Sept. 15. “This combines Glassnode’s illiquid supply data with Plan B’s traditional S2F model, creating a price floor based on real-time scarcity of Bitcoin. Currently $ 39,000, ”he added at the time.
There have been a number of people who have attempted to call bitcoin the highest price and some even believe that a single “bitcoin will ultimately equal $ 1 million”. Recent statements by Bennett and Clemente touch the low of bitcoin’s price and the low of the lows. These two predictions combined indicate that the lowest of the lows following the top of this bull cycle could be between $ 39,000 and $ 50,000.
What do you think of Justin Bennett’s blog post suggesting the bitcoin floor will be around $ 50,000 per unit? Let us know what you think of this topic in the comments section below.
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