Technical analysis is also proving positive, with Bitcoin racking up six consecutive monthly green candles in a row.
Today marks the start of a brand-new quarter — and data shows that there was no shortage of positive momentum for Bitcoin in Q1.
Traditionally, March tends to be one of the most gruesome months for Bitcoin — and over the past nine years, the digital asset’s monthly close has been in the red nine times. But BTC has bucked the trend in 2021 after appreciating by 29.84%. That’s a stark contrast to March 2020, when BTC plunged by close to 25% following a gruesome flash crash that became known as “Black Thursday.”
Technical analysis is also proving positive, with Bitcoin racking up six consecutive monthly green candles in a row. And if the cryptocurrency manages to follow the pattern that’s been seen following past halvings, further upside could be ahead.
Full Steam Ahead?
Given the activity that we’ve been seeing from some of the world’s biggest investment banks, there appears to be a belief that further upside could be ahead — and private wealth clients want in.
Yesterday, Goldman Sachs’ new global head of digital assets, the aptly named Mary Rich, told CNBC that the company is exploring ways to offer “thoughtful and appropriate access” to cryptocurrencies for its clients… hot on the heels of Goldman Sachs doing the same.
Halving events tend to create supply shock for Bitcoin as fewer new coins enter circulation. (Just 900 BTC are mined on a daily basis now, as opposed to 1,800 BTC before.) Heightened demand can push up prices, and based on what’s happened in previous four-year cycles, some analysts believe that there’s further room to run.
Today marks 325 days since Bitcoin’s third halving — and since May 11, 2020, Bitcoin has gained 590%.
Bitcoin’s second halving took place on July 9, 2016. Fast forward 325 days to May 30, 2017, and the cryptocurrency had surged 234% from $650 to $2,175.
Back in May 2017, it then took 201 days for the cryptocurrency to surge 823% to reach the top of $20,089.
Of course, what’s happened in the past doesn’t guarantee what lies ahead in the future, and it’s very unlikely that Bitcoin will appreciate by 823% from its current price point by October 19, 2021. But with bold predictions suggesting that the cryptocurrency could hit six figures within months, 2021 is going to be a white-knuckle ride for Bitcoin investors.