Last Week In Bitcoin is a series discussing the events of the previous week that occurred in the Bitcoin industry, covering all the important news and analysis.
After breaching $40,000 on Monday, it seemed a bull run was all but certain this week; however the fun didn’t last too long before bitcoin’s sudden surge from Sunday started to fizzle away. The week has been quiet news-wise, and besides the regular MicroStrategy and El Salvador coverage, there was very little else to persuade the market that it was time to get bullish. However, as we’ve seen over the last decade, there’s always room for being bullish.
Chart Of The Week
The chart above is based off of my previous piece analyzing bitcoin’s performance during each of the past 3 halving epochs. The blue dotted line represents bitcoin’s performance should it follow the exact trend of the last bitcoin halving epoch, whereas the orange line represents the actual performance of bitcoin since the last halving in May 2020.
Clear as daylight, it is evident that bitcoin is prime for a breakout in the coming months, should it follow the same trajectory. If bitcoin does in fact follow this path, it’s likely to peak somewhere around the middle of October — or perhaps November when Taproot activates — with a price of somewhere between $200,000 and $400,000 per bitcoin.
What’s interesting to note is bitcoin has thus far outperformed the previous halving, only recently seeing lower gains than before, but still primed for a decent bull run. Of course, this time around there’s a lot more FUD being spread than in 2017, as a lot more institutional investors and people like Elon Musk have gained control of the market narrative.
In my opinion, we are looking at a delayed performance compared to the last bull cycle and although I firmly believe bitcoin is about to breakout, we could see this entire scenario play out over the next six to eight months, instead of a lot sooner as many would hope.