The bitcoin price has had a strong run in 2020.
From its low of around $4,000 in March this year, the cryptocurrency has more than recovered, hitting a new all-time high of around $28,500 yesterday.
Bitcoin’s bull run is behaving more like 2013
Pseudonymous analyst PlanB, best known for his stock-to-flow model, recently tweeted that he feels Bitcoin Union scam bull run feels more like 2013 than 2017.
In the figure below (source: PlanB Twitter), you can see the price trend since halving in 2012 (dark blue), halving in 2016 (light blue), and halving in 2020 (red).
What is amazing is that Bitcoin seems to be moving between the two previous halving cycles. This is despite the fact that the cryptocurrency showed little signs of an imminent recovery earlier this year.
Analyst PlanB believes that Bitcoin could reach a price of $288,000 by the end of 2021 in this rally. His Twitter followers have a similar view. With about 36,000 respondents, the poll showed that about 38 percent think bitcoin will reach a level of $100,000 by the end of 2021.
Do you think #bitcoin will reach $288K (S2FX model), $100K (S2Fv2 model), $55K (S2Fv1 model) .. before December 2021 … or will BTC stay below $55K?
– PlanB (@100trillionUSD) December 27, 2020
Not the only bitcoin bull
PlanB isn’t the only one bullish about Bitcoin’s future trajectory. Tim Draper recently predicted in an interview that BTC can reach around $250,000 by the end of 2022.
Another well-known and accurate trader named Cryptobirb tweeted today that it is quite possible that BTC could still reach $30,000 by the end of this year.
We may really see $BTC 30k before 2020 ends pic.twitter.com/xjvUg1IpvL
– CRYPTO₿IRB (@crypto_birb) December 28, 2020
The Bitcoin price has entered uncharted territory and is in a new price discovery phase. For the first time in history, more and more companies and institutions (Microstrategy, PayPal, etc.) are starting to invest in Bitcoin.
Personally, one should be aware that the price is extremely volatile and that it is quite possible for Bitcoin to reach six-figure levels, but it is also possible that the price could fall extremely, as the previous cycles have shown.
We are looking forward to the year 2021!