Bitcoin stopped just short of its all-time-high on Monday, and Tuesday has seen the price drop back as far as $65,000. Has bitcoin just made a double top, ready to now reverse, or is this a quick pause before claiming the all-time-high and continuing on higher?
$BTC fails at the last
As $BTC powered towards the $69,000 all-time-high on Monday evening and Tuesday morning, all would have thought that this high from the last bull run in November of 2021 would finally have been taken out.
Source: Coingecko/Trading View
However, gravity took hold and pulled the price all the way back down to the low $65,000 level. Since that time though, $BTC has crept back up again and is currently trading at around $66,700.
Could this now be a double top? This is a bearish pattern, and if it is the case, this has the potential to send $BTC much lower, and there is even the possibility that this could be the top of this bull market.
A far more likely scenario
That being said, this particular scenario is most probably not going to play out. There is just too much buying going on, and so a pause in the uptrend is the more likely game plan.
In order to really get some perspective on this, a post by @Pladizow on X, which was retweeted by Plan B, shows where we are in the grand scheme of things.
BTC monthly:Some distorted bull porn.What’s the opposite of stepping in front of a bulldozer to pick up pennies? pic.twitter.com/wP1tY1IuqJ
— Nunya Bizniz (@Pladizow) March 4, 2024
Also, Plan B himself has been vindicated with his famous stock to flow chart. It certainly looks as if bitcoin is getting back on track, and if the prediction of the chart is to be believed, $BTC could be heading for around $500,000.
S2F chart with extra grid-lines! This makes it easier to read the log scale. So, S2F model predicts 0.4*110^3 = $532k average bitcoin price for 2024-2028 cycle (grey line), not $700k or $900k. Explanation of log scales and S2F chart in this video:https://t.co/noaqjdlmqV pic.twitter.com/NZLT45vAHH
— PlanB (@100trillionUSD) March 3, 2024
A proper bull market
We are possibly in the early stages of a bull market like no other. The previous bull market was marred by Covid, and by centralised companies that crashed and caused huge amounts of selling.
The old remark that ‘this time is different’ could actually be true. The amount of buying that is taking place currently, and that is likely to continue, can potentially push $BTC up to undreamed of levels. Make sure your safety belt is on.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
