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Bitcoin price has gained 100% of its value over the last two and a half months. With such a massive gain in such a small amount of time, analysts are wondering whether this is just the beginning of a stronger bull rally or whether the market is headed towards over-extension.
Bitcoin trend analyst CaseBitcoin pointed out that the “doubling time” for Bitcoin has been much shorter in previous rallies. At the height of the 2017 bull run, Bitcoin price doubled in just 12 days – a far cry from the 75 days this rally is looking at currently. The firm suggested that the token’s increase could accelerate even quicker from this historic trend.
Bitcoin’s price moves fast, but how fast is too fast? A look at bitcoin’s doubling-time… 1/ pic.twitter.com/XsggIDIVrn
— CaseBitcoin (@case4bitcoin) March 16, 2021
The fastest doubling time this current cycle has seen is looking at 22 days when Bitcoin gained from trading at $21,000 USD to $42,000 USD. Looking at the comparison between January and August’s 2017 bullish surge, just before Bitcoin price skyrocketed in the previous rally, there is still room for more rally this time. If this is the case, the doubling time might shorten and the cryptocurrency might see a monumental surge to new all-time highs.
The firm suggests there are similarities between January’s market action and that which occurred during August 2017 — the “middle period of the 2017 bull market.” Back then, Bitcoin’s price doubled over just 26 days to tag $5,000 for the first time, before slumping by 40% in the following weeks. CaseBitcoin concluded the thread with a note:
“It’ll be interesting to see if doubling-times as fast as the end of the 2013 and 2017 cycles happen this time around too.”
Can Bitcoin rally further?
Some analysts are suggesting that the bull market has more room to play and that the cryptocurrency hasn’t met its match in recorded highs just yet. Glassnode founders noted that the decline in Bitcoin’s liquidity is a bullish sign and that investors are looking to lock up their tokens rather than trade them or sell them to take profit:
Despite recent volatility, #Bitcoin supply is still drying up at astonishing rates for this time around in the cycle. https://t.co/yslda1jUha pic.twitter.com/y1SInrBjEF
— Jan & Yann (@Negentropic_) March 16, 2021
If this is the case, then Bitcoin might have hit a healthy target as a support barrier and a decline like the one following the previous bull runs might not be as dramatic.