Bitcoin is back to price discovery after smashing its previous all-time high at $65,000. At press time, the benchmark cryptocurrency trades at $66,196 with 6.2% and 17.7% profits in the daily and weekly charts, respectively.
Bitcoin seems unstoppable at this point with the general market sentiment flashing extreme greed for several weeks. The first crypto by market cap could fulfill the prophecy and close another October in the green.
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After the approval of the first Bitcoin ETF in the U.S., a product that registered record demand levels on its first day, many expected a “buy the rumor, sell the news” event. Dan Morehead, CEO at Pantera Capital, hinted at the possibility that this event could mark BTC’s price next cycle top.
With Bitcoin trending to the upside, this theory could have been invalidated. Via Twitter, Morehead shared historical data on BTC’s price performance after breaking a new all-time high.
On past occasions, as the CEO of Pantera Capital pointed out, the benchmark crypto records an average 8.8x increase over a 166-day period, as seen in the chart below.
Morehead believes the Bitcoin price cycle could have changed by becoming shorter with every halving. Thus, BTC’s price could behave differently in the future as the market matures and fresh capital gains exposure to the digital asset. The BTC-linked ETF launch could contribute to that market transformation.
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What Next For Bitcoin, Potential Price Targets
In that sense, the short-term seems bullish for Bitcoin as suggested by on-chain data. Analyst Ali Martinez reviewed BTC’s Entity-Adjusted Dormancy Flow, a metric used to predict potential market tops, and determined that the cryptocurrency has “a lot of room to go up”.
This metric has historically signaled a top when it reaches 1 million. As of yesterday, October 19th, it was sitting at less than 500,000 which could suggest Bitcoin is ready to take aim at the $100,000 price target.
Further data provided by analyst David da Silva Rosa indicates that Bitcoin moves quickly to new highs after breaking previous record levels. In December 2020, it took BTC’s price a little over two weeks to surge from $20,000 to $30,000.
Later, the benchmark cryptocurrency will take only 6 days to rise from $30,000 to $40,000. Thus, the analyst predicts $100,000 could be hit sooner than expected.
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This phenomenon is probably driven by mania and a FOMO effect that could jeopardize BTC’s climb to those levels, as speculators and short-term holders entered the market via derivatives. The excessive leverage positions weaken the bullish momentum.