- Bitcoin’s price moves in four-year cycles, and the next cycle could take it to $1 million.
- BTC should be worth $400,000, according to Guggenheim’s Scott Minerd.
- The IOMAP confirms that Bitcoin had entered a price discovery; no known resistance lies ahead.
Bitcoin, for the first time in history, is trading above $20,000. Additionally, the flagship cryptocurrency made a remarkable upswing to new all-time highs above $22,000 on Thursday during the Asian session. The managing partner, as well as the head of investments at Coinfund, Seth Ginns, reckons that Bitcoin could rally to $1 million.
Bitcoin commences the grand journey
The rally above $20,000 has left the market extremely volatile and speculative. The fear of missing out (FOMO) has engulfed investors who anticipate the rally to continue even in 2021. Ginns made the bold statement while speaking to Bloomberg’s Caroline Hyde on Thursday.
A pattern recognition of Bitcoin 4-year cycles, $150,000 to $250,000, looks like the base case. But here is the thing, it is becoming an institutional asset class this cycle… and could pull forward the next cycle between $500,000 and $1 million and then probably consolidate for a few years in that range. Still, it could get there in the 2021 and 2022 timeframe.
Consequently, another bold prediction statement was also made by Scott Minerd, the manager at Guggenheim Global:
It is amazing over a short time how big of a run-up we had. Our fundamental work shows that Bitcoin should be worth about $400,000.
Bitcoin price long-term price analysis
The bellwether cryptocurrency rallied by nearly 3,050% from the lows traded in 2017 to the former all-time high at around $19,899. The current bull run has been likened to the 2017 bullish cycle, which means that Bitcoin is still in the rally’s initial stages.
BTC/USD weekly chart
At the time of writing, BTC is trading at $21,988 amid the bulls’ push to sustain gains above $22,000. Volatility and volume are incredibly high, thus the possibility for a rally emanating to higher new-all-time price levels.
IntoTheBlock’s IOMAP chart reveals that Bitcoin has not known resistance ahead. Therefore, the rally to new all-time is likely to continue.
Bitcoin IOMAP chart
On the downside, initial support has been established between $20,358 and $20,678. Here, nearly 417,200 addresses had previously bought roughly 308,000 BTC.
It is essential to note that if this support is broken, BTC could correct to the most robust support at $18,760 to $19,780. About 968,000 addresses are profiting from nearly 648,000 BTC previously bought in the range.