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Afraid of these Heights

Back in November 2021, Bitcoin reached an all-time high (ATH) of $69,000 before cryto-winter set in.  This past Monday Bitcoin touched $69,000 before faltering.  Being traded in markets around the world, $69,000 Bitcoin represents a large psychological hurdle for traders and investors to overcome.  Since touching the ATH, Bitcoin has been trading between $66,000 - $68,000 the past couple of days.  Where will it go when it finally pushes past $70,000?


Let’s look at the previous Bitcoin cycle.  Back in 2020, the previous all-time high was $19,800, set in December 2017, which was finally crossed in December 2020.  Once the market broke through the previous ATH, it only took 18 days to reach $40,000 and eventually went past $60,000 by March 14, 2021.


In Bitcoins history, it has taken 18 days or less to double in price after crossing the all-time high in 3 of the past 4 cycles as pointed out in tweet from Dylan LeClair (@DylanLeClair): The time it took $BTC to double after previous breaks of ATHs:

Dec 2020: 18 days

March 2017: 84 days

Nov 2013: 10 days

March 2013: 18 days


Keep in mind, once it crosses the previous ATH, investors call these uncharted waters “Price Discovery”.


Bitcoin may seem expensive at $70,000, but how expensive will it feel at $140,000?  You don’t have to buy a whole coin.  Each Bitcoin is divided into 100,000,000 units called “Satoshis”. But soon, it will cost more than $700 to purchase 1,000,000 satoshis.


Past performance does not guarantee future performance.  That said, this cycle is different.  All the previous all-time highs were crossed months after the Bitcoin halving, where the bitcoin mining rewards are cut in half.  The next halving is predicted to occur on April 17th, and it looks like a new ATH will be set before this date.


Hans and I discussed this and more in Episode 106: Afraid of these Heights.  Find it wherever you get your podcast feeds.  We’ve got a couple of links to purchase Elllipal and Ledger wallets at https://www.thebitbitepodcast.com/deals


Rick

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