The Bitcoin and cryptocurrency markets have undergone a predictable pullback this week as the world’s top digital asset drops back into four figures. Sky-high halving predictions are still on track, however, with a major bull run predicted for next year.
The Bitcoin correction has accelerated over the past 24 hours dropping it to a low of just over $9,700, down almost 5% from its weekend high of $10,175. Price action is not linear so this has been expected and Bitcoin could even fall further before continuing upwards.
At the time of publishing, BTC was holding support at the $9,750 level where it spent a few days before the latest peek into five figures. It could easily drop to the next support zone around $9,350, however, the strong weekly candles have signaled that the rally is real.
Cryptocurrency markets have shed $10 billion over the past day or so and altcoins are also cooling off after their solid gains over the past week.
Bitcoin Halving Prediction on Track
Bitcoin price predictions are still largely bullish leading up to the halving which is just 91 days away now. One well-noted example is ‘PlanB’s’ [@100trillionUSD] stock-to-flow model which measures the relationship between the production of supply and the current stock available.
The analyst has predicted that BTC will remain above $8,200 this year and the price near halving will be back over $10,000. He does not foresee any fall below $6,000, but others like trader Tone Vays have maintained that $4,000 is still possible.
The model predicts a huge bull run after the halving similar to the previous two occurrences in 2012 and 2016. The big price surges came in 2013 and 2017 in accordance with this S2F chart.
If history is to repeat itself, then 2021 could see a similar surge taking prices as high as $100,000. The analyst added that prices overshot the model after the past two halvings so gains following this next one could be even greater.
The S2F model predicts that FOMO-inducing six-figure price at any time between the next halving in May and the succeeding halving in 2024 — so it could still take a couple of years to get there.
The halving only considers the technicalities of the Bitcoin economic model, but fundamental factors such as further global financial turmoil or geopolitical tensions are likely to drive more people into wanting to hold a bit of what is now firmly considered a safe haven asset.