Bitcoin’s price gained 100% in the last 75 days, encouraging analysts to study whether the market is overheated and the numero uno crypto’s rally is over stretched.
Nevertheless, historical study of Bitcoin’s price movements by CaseBitcoin indicates that Bitcoin price could appreciate further, citing that the king of crypto’s “doubling time” (time span for price to increase 100%), has shrank to a mere 12 days before the peak of the 2017 bull rally.
CaseBitcoin also points that the quickest doubling time recorded during the prevailing market cycle was on January 7, with Bitcoin rallying from $21,000 to $42,000 in a matter of 22 days.
The firm indicates that there are parallels between January’s rally and the bull market of August 2017, which represents the near mid-period of that period’s bull rally.
At that time, Bitcoin’s price gained 2x in a matter of mere 26 days to hit $5,000 for the foremost time, before plunging by 40% in the weeks ahead. With respect to the latest rally, CaseBitcoin said:
2/ First of all, doubling time is the number of days it’s taken bitcoin to double to any given price.
For example, right now, the doubling time is 75 days. In other words, 75 days ago the price was half was it is today.
— CaseBitcoin (@case4bitcoin) March 16, 2021
6/ A similar level – 26 days – happened in August 2017, as price had rallied quickly to $5k.
Generally the last few months look like that middle period of the 2017 bull market, with doubling times mostly under 100 days, but never under 20. pic.twitter.com/cZWbfh8tbD
— CaseBitcoin (@case4bitcoin) March 16, 2021
The analysts further said “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.”
Eight years back, Bitcoin liquidity doubling time decreased to a mere four days within a week of that bull rally’s peak. Several analysts trust that the prevailing rally will continue, with data published by Glassnode founders indicating that the decrease in Bitcoin’s liquidity (as assessment to understand the drop in floating coin supply) has expedited since the beginning of this year.
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
The data indicates that Bitcoin’s floating supply has been declining considerably since April 2020, with Glassnode assessing that 78% of available Bitcoin supply has already turned illiquid by the end of December 2020.
