Following the recovery patterns observed in previous bull markets, Bitcoin has risen more than 300% since its 2024 low of about $25,000. During these cycles, Bitcoin’s ROI (Return on Investment) has historically grown exponentially, frequently reaching new all-time highs. Even at its current price of almost $100,000, Bitcoin has potential for further increase.
The Bitcoin rally in 2017 and 2021 went far beyond its initial 300% recovery, ultimately driving ROI to 15 times or more from the cycle’s bottom. A $200,000 target doesn’t seem out of the question if Bitcoin were to follow a similar trajectory. Such expansion would be consistent with its past performance, in which rallies propelled by momentum and rising adoption raised its valuation.
The road to $200,000 won’t be without obstacles though. The $100,000 mark has already caused early investors to take profits because it serves as psychological resistance. Volume during recent declines emphasizes this pattern, indicating that short-term traders are profiting from Bitcoin’s increases.
For indications of ongoing buyer interest, it is important to keep a close eye on key support levels at $93,000 and $84,000. The impending 2024 Bitcoin halving is one of the factors propelling the cryptocurrency’s upward potential. Events involving halving have historically decreased the supply of Bitcoin while igniting investor optimism. A favorable environment for Bitcoin’s growth may also be produced by growing institutional adoption and possible regulatory clarity.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com