Recent performance has reignited the debate over U.Today -'s long-term price trajectory. Compared to the past two market cycles, the current market cycle shows that Bitcoin still has a lot of room to grow and could possibly reach the $200,000 level. Examining Bitcoin's charts, it is clear that this cryptocurrency closely mirrors previous cycles.
Following the recovery pattern observed in previous bull markets, Bitcoin has risen more than 300% from its 2024 lows of around $25,000. During these cycles, Bitcoin's ROI (return on investment) has historically grown exponentially, frequently reaching new all-time highs. Even with the current price of almost $100,000, Bitcoin has the potential to rise further.
Bitcoin's rise in 2017 and 2021 far exceeded its initial 300% recovery, ultimately increasing ROI more than 15x from the bottom of the cycle. If Bitcoin follows a similar trajectory, a $200,000 goal doesn't seem impossible. Such an expansion would be consistent with past performance, where momentum and increased adoption drove the rally and boosted its valuation.
However, the path to $200,000 is not without obstacles. The $100,000 level has already triggered profit-taking among early investors as it acts as a psychological resistance. Volume during the recent pullback highlights this pattern, showing short-term traders profiting from Bitcoin's rise.
It will be important to closely monitor the major support levels at $93,000 and $84,000 to indicate continued buyer interest. The impending Bitcoin halving in 2024 is one of the factors boosting the potential of cryptocurrencies. Events involving halvings have historically reduced Bitcoin's supply and sparked investor optimism. A favorable environment for Bitcoin growth could also be created by the potential for greater institutional adoption and regulatory clarity.
This article was originally published on U.Today
