Since Bitcoin hit its all-time high (ATH) in December 2017, cryptocurrency investors have been eagerly awaiting for a strong enough recovery to reach new highs.
The momentum of the price rally in the summer is gone and investors look onward to the block reward halving for optimism.
Can the Halving Event Catalyze a Rally?
The milestone event for the block reward halving for Bitcoin has had much of the community optimistic about a price rally. While it is an important milestone, Bitcoin price peaks haven’t coincided with the much-anticipated event.
The previous all-time high on a macro perspective was at the $1,100 level in November 2013. Since that date, it took 1,170 days to reach the next all-time high at $19,900. While investors might feel like the bear market of 2018 and to some extent 2019 has been way too long, so far it’s only been 720 days since the last price peak.
In 2019 Bitcoin’s price managed to rebound after the abrupt fall at the end of 2018. Optimism returned with a potential tailwind for a full rally when Bitcoin rose from the $3100 lows to a local top of $14,000 in June. Expectations quickly faded in the past month as BTC prices slid to the $7000 region. The breakdown led investors to re-assess their bullish stance.
Currently, the Bitcoin price is whipsawing through $7300 and $7500 with investor sentiment swinging around. In the longer term, one alternative way to pinpoint when the next all-time high will be by looking at how long it’s been since the last price high.
720 Days Since Bitcoin Previous All-Time High
While this isn’t a clear indication of when the Bitcoin price will achieve a new high, it is a good proxy for visualizing the long term trajectory of the price. There still are around 450 days left to see if history will repeat itself from the 2013 high to the one in 2017. So far only 720 days have passed since the previous all-time high, reports (@digitalikNet).
Days since last ATHhttps://t.co/6be9sfJNDE#bitcoin #btc pic.twitter.com/OEhTQiWMs7
— digitalik.net (@digitalikNet) December 7, 2019
Nonetheless, the visualization of the number of days since the previous all-time high is hinting that the market is in a run-up period, which could be followed by a rally to a new peak. However, the rally may not happen until after the upcoming 2020 reward halving.
Image courtesy of Twitter, Shutterstock.
