As 2022 draws to a close, Bitcoin (BTC) is extending its sideways trading pattern after a turbulent year dominated by mostly bearish conditions. But despite Bitcoin’s consolidation, the asset’s price action is in line with the historical path that could build the foundation for the major cryptocurrency to reach new highs.
In this line, respected cryptanalyst Vince Prince from TradingView He notes that Bitcoin once again formed a “Merry Christmas Cycle” in 2022, a pattern that has been seen over the past three Christmases.
According to Vince’s analysis, bitcoin has always reached all-time highs over the Christmas period during the cycle. Additionally, he notes that Bitcoin forms new all-time highs every year on Christmas Eve.
With the current bitcoin price ranking among yearly lows, analysts note that depending on the cycle, virgin vaults have always formed new lows that end the bear market and start a new Christmas cycle.
“The important thing here about the basic empirical meaning of a cycle is that it has always worked perfectly before, which means that there is a very high probability that Bitcoin will reappear with the same cycle again,” he said.
In fact, if the cycle continues, Bitcoin will likely rise to around $1.8 million by Christmas 2026. If the target price is met, Bitcoin will increase by around 10,614% from the asset’s price at press time.
Bitcoin holders hit a monthly high on Christmas Day
Even though the Bitcoin price is still low, investors are still hoarding the asset. Notably, on December 25, the number of bitcoin addresses it held was 43,764,748, which marked a monthly high. The lowest monthly Bitcoin address value was recorded on December 11th at 43,497,484.
Bitcoin price analysis
At the time of writing, Bitcoin was trading at $16,823 as the consolidation extended sideways with no potential catalyst for a decisive move in sight.
Notably, Bitcoin has been affected by macroeconomic factors, a situation complicated by the collapse of cryptocurrency exchange FTX as investors wait for a possible price bottom. In this vein, Coinphony reports that historical analysis indicates a possible Bitcoin correction to $9,000, and it is worth noting that this post served as the basis for Bitcoin’s recent high of $69,000.
Based on historical price action, the data also suggests that Bitcoin could be in line for another rally over the next three years. In particular, by looking at bitcoin’s movements in the past, a general pattern emerges in which the asset reached an all-time high (ATH) followed by a bear market year.
Notably, legendary investor Bill Miller thinks Bitcoin trading at $17,000 is a remarkable achievement given the implications of the FTX crash. In fact, the data shows that after the FTX disaster, Bitcoin recovered much faster than other capitulation events.
Meanwhile, investors will be looking for a potential rally in Bitcoin as the asset aims to become digital gold. Interestingly, after Bitcoin’s previous rally, cryptocurrency skeptic Peter Schiff admitted that investor interest in gold has waned with the cryptocurrency instrument taking center stage.
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Bitcoin’s Post-History ‘Christmas Cycle’ That Could Send BTC $1,800,000 in 4 Years appeared first on Coinphony.