Historical Pattern Shows Bitcoin Will End 2021 At $390,000

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Last Updated on 23 March 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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The most important voices in Bitcoin and crypto couldn’t stop discussing a new chart that has caught everyone’s attention. It shows a historical pattern for Bitcoin’s previous crashes and rises and based on that… predicts that we’re heading for $390,000 this time round.

Could it be true?

Advertentie.

Previous bubbles

Yassine Elmandjra, crypto analyst at asset manager ARK, might look like he’s had too much to smoke or drink when he presented the hereunder graph, but on further reading I do admit that I see his point.

According to him:

This is how bitcoin’s price would behave if the current bull market dwarfed the 2017 bull market in the same way the 2017 bull market dwarfed the 2013 bull market. The top would be around $390,000 per bitcoin. The red dot is where we’d be now.

artavet / Depositphotos.com

It almost looks too good to be true, but the devil is in the details of course. At this moment, spurred on by editorial voices in the Financial Times and the Wall Street Journal, I am reading The New Great Depression: Winners and Losers in a Post-Pandemic World.

According to (gloomy forecast) author James Rickards, we are only at the beginning of the new great depression, which should be compared to the one of 1929-1937 and not 2007-2008. It is only when the layoffs will start and government stimulus will end (forecasted for Q2 of this year) that the depression really kicks in.

Past predicts future

Mr Rickards makes his case in more detail than Mr Elmandjra has done for Bitcoin, but they both make the same point. Look to the past to predict the future.

According to the overview presented in several Mainstream Media articles which discussed the Bitcoin price in detail when it crossed the $20,000 barrier in December, there have been several rises and subsequent crashes of Bitcoin in the past. Though most of us remember 2017-2018, we tend to forget 2013.

In fact, only two and a half years after Bitcoin broke through the value of $1 (reached on 10 February, 2011), the coin developed by Satoshi Nakamoto was ready to break $1,000, in late November 2013 to be exact.

As always, a steep crash followed and the price fell by some 50% by mid December. It took Bitcoin three years to regain $1,000 again.

If the 2020-2021 bull run would do for Bitcoin what the 2017-2018 bull run did for the coin compared to the 2013 run, then the calculation indeed ensures that Bitcoin will reach a top of $390k by the end of this year.

Interesting mathematics.