Is Bitcoin Bracing for a Mega Pump? Price Mirrors Mid-2020 Before Explosion to $69K

The price of Bitcoin (BTC) has struggled to establish a firm grip on the region above $70,000, often suffering a pullback within a few days of trading within that territory. However, if history is anything to go by, such price action, as well as trading within a defined range, bodes well for the cryptocurrency’s price.

Crypto Quant founder Ki Young Ju recently pointed out this potentially bullish price signal, examining its relationship to a similar period in the previous market cycle. Precisely, Bitcoin’s current price movement resembled a similar period in 2020 that eventually led to BTC hitting a new all-time high.

History Favors Bullish Bitcoin Performance

The historical charts reveal that between March and August 2020, Bitcoin’s price hovered around $10k, facing strong resistance each time it tried to claim that price level. However, the breakthrough finally came in early August, as Bitcoin broke above the $10k barrier and eventually closed the year well above $20,000.

Ki Young Ju notes that while Bitcoin experienced little volatility during its consolidation back then, on-chain volume remained relatively high. The same trend is now repeating, with inflows into Bitcoin whale wallets hovering around $1 billion in recent weeks. These strong inflows, which are evidently led by the Bitcoin ETFs, signify increased demand for BTC and could lead to a similar outcome as it did in the previous market cycle.

It is worth noting that the Crypto Quant founder made a similar call in 2020, as Bitcoin saw an unprecedented increase in on-chain activity en route to hitting new highs.

Same vibe on #Bitcoin as mid-2020.

Back then, $BTC hovered around $10k for 6 months with high on-chain activity, later revealed as OTC deals.

Now, despite low price volatility, on-chain activity remains high, with $1B added daily to new whale wallets, likely custody. https://t.co/1TcC7BwNUb pic.twitter.com/o3N1AHxSJm

— Ki Young Ju (@ki_young_ju) May 31, 2024

Only time can tell whether Bitcoin’s current price trajectory will follow the same path as the last market cycle, especially in connection with overcoming a multi-month resistance level. However, many experienced market observers favor a repeat and back the cryptocurrency to enter the six-digit price range within the next year.