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

History backs Bitcoin to overcome its current resistance levels to set a new all-time high in the coming months.

Bitcoin Price Surge

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.

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.

Wilfred Michael

Wilfred Michael is a highly experienced cryptocurrency journo. He has spent more than five years covering this exciting new technological space, and relishes the opportunity to play a role in driving what he considers to be the future of finance.