If you haven’t heard the news, Bitcoin is not nearly done and dusted. As a matter of fact, a few months ago it showed signs of life, almost doubling its price from the beginning of 2023. Every week it’s a new price record, with Bitcoin breaking past $30,000 last week and aiming higher this one. Of course, there might be a bit of a calm before the storm, but according to some experts, the current situation reminds everyone a lot of 2019’s price movement.
Bitcoin experienced a major surge that year, and if the same happens, it could very well be on its way to $45,000. If that happens, all the crypto doubts will be erased, even though the market is doing more than fine with other coins such as Ethereum regaining long-lost prices.
Markets Stabilizing as ‘Rotten Fruits’ Are Pushed Out
Crypto market analyst Vetle Lunde sees major parallels between Bitcoin’s current price surge and the 2019 situation. In a public statement, he said that the market is stabilizing as ‘rotten fruits’ are being pushed out. Think of it as weeding out the bad actors on the market, which include FTX’s demise, crypto hedge fund Three Arrows Capital, and more.
In an interview for CoinDesk, Lunde drew parallels between Bitcoin’s 2019 surge. He said that the recovery state is pretty similar in duration, price movement, and drawdown to that of a few years ago. He also said that Bitcoin might reach $45,000 soon. Currently, Bitcoin’s price is hovering over $30K after a year of distress and many troubles. The price has fallen way down since the 2021 highs, but, while it was down, Bitcoin never went out.
In a surprising turn of events, the price has recovered over 80% in 2023. The world’s top cryptocurrency started the year in a bad way, yet managed not just to consolidate its price, but to shoot over the moon, and experts believe it’s just the beginning of a new thrilling bull run.
Investor Caution Remains Key
Even with Bitcoin’s price down, Lunde has congratulates the way it stayed conservative due to investor caution. In the late months of 2022, there was a lot of forced selling. Investors who were cautious panicked and sold their coins too. However, the majority stayed put, adding exposure to the Bitcoin market which fed the current rally.
In a way, Bitcoin fed on short squeezes and went higher and higher. Neutral derivative sales show further signs of investor caution. While everything can change overnight, everyone’s celebrating the fact that Bitcoin’s price has stabilized and is poised to go higher.
How feasible is a run to $45,000? It won’t happen overnight, but Lunde believes it is coming soon. In fact, he predicts that this price jump could come as soon as mid-May, although those expectations could be too optimistic. Others believe that it might be in the summer or autumn at the very least. Whenever it comes, we’ll be waiting for it with open hands.