Important facts:
The company isn’t ruling out the pioneer’s cryptocurrency hitting $ 280,000 before the year ends.
Bitcoin tends to double its value more often before the first anniversary of each halving.
Data analytics firm Ecoinometrics believes that it only takes Bitcoin (BTC) a few months to double its price. To check this, he developed a model with which he could compare the current growth path of the value of the cryptocurrency with previous cycles from each halving. In doing so, he identified similar patterns that are useful in concluding that the crypto-asset will soon double its current price.
If the current bullish Bitcoin cycle looks like the previous one, and it has so far, there is reason enough to expect the value of the cryptocurrency to double in a few weeks and stay that way for the next few months of 2021. “No, you are underestimating the likelihood that we will hit $ 286,000 before the third quarter of the year,” the report said.
Bitcoin’s value can reach $ 100,000 around April 18 if the ecoinometrics theory is applied. In fact, the company presents a chart to aid its analysis, showing the trajectory of previous cycles in blue and the current trajectory in orange. The highlighted points indicate the approximate dates that Bitcoin will reach new values if the pattern of previous cycles is maintained.
Ecoinometrics highlighted the dates on which Bitcoin’s value could double if the pattern maintained in previous bull cycles is followed. Source: Ecoinometrics.
After the first halving, it took about 77 days for the cryptocurrency to double in value. It then took another 35 days to double again, followed by another 15 days. Later it did after 217 days and finally after 12 days. In the current cycle, the first doubling took 6 months and the second 2 months. “We have currently waited less than three months for the next doubling, which is targeted to $ 74,000,” the report added.
Keep in mind that halving or halving is a mechanism that is part of the cryptocurrency code to control bitcoin inflation. The last such event, the fourth in the history of the crypto asset, occurred in May 2020. At that time, the mining premium fell from 12.6 BTC to 6.25 BTC.
How long will it take you to double your bitcoin investment?
The chain data analysis company also submitted a density chart to demonstrate its theory. In it, he points out the axes a user will have to wait for their investment in Bitcoin to double.
On average, it takes about a year for the price of Bitcoin to double, but times get shorter during a bull market like this one. In this way, the large peak on the left side of the graph indicates that before the first anniversary of each halving is very common A waiting period of two months is required to double the investment.
However, if the investment is made during a bear market or in the first phase of the bull market after the halving, it will most likely take a year for the investment to double. From there, lead times extend to more than a year if the investment is made at the end of the cycle of each halving.
In its density chart, Ecoinometrics shows that a user must buy Bitcoin near the darkest areas in order to double the investment in a short period of time. Source: Ecoinometrics.
The ecoinometrics theory agrees with the analysis of analyst Willy Woo, who has said that the current bull cycle of the pioneer cryptocurrency is still far from peaking. As CriptoNoticias recently reported, Woo assured that the pattern of bitcoin accumulation by long-term investors shows that there is “much of the year before we see this bull market peak”.
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