For the last two years, the Bitcoin price was lingering at around $10,000. In the past, this key resistance level has caused serious FOMO. Nonetheless, an early crypto investor who has experienced a thing or two, the cryptocurrency won’t stay or linger around that price forever. Moreover, he is seeing parallels between the calm before the breakout into the last bull market compared to the current price action.
Early Crypto Investor: Bitcoin Can’t Stay Around $10,000 Forever
Soon enough, the world will know if valuation methods that are focusing on scarcity like the stock-to-flow model keep holding true for Bitcoin. The lowered block reward miners now receive in BTC should start to force Bitcoin prices higher because of the lower supply flow if they are accurate.
Since then, Demand dynamics and Natural supply started to move favor of price increase. Moreover, the asset forms a bubble. There is no ground to believe otherwise. Several times now, that’s exactly what the cryptocurrency did.
The asset spent what to crypto investors at the time felt like long trading below $600 after the cryptocurrency’s halving in 2016. The crypto asset never looked back when Bitcoin finally took out that level and left it behind.
Once again, the same thing is taking place, but this time at $10,000. An early crypto investor dug up an old tweet to share where things may potentially be at this time around and the parallels between each market cycle.
The tweet he shared was from four years ago. Moreover, Bitcoin is about to take off just like it did last time around if the every-four-year halving-based theories are right.
Nothing In Between: $100,000 Plus, Or All The Way Down To Zero
However, there’s no middle-ground for the cryptocurrency warned the Bitcoin investor both then and now. It either fails miserably or goes on to fulfill the possible tech enthusiasts and savvy investors believe as the future of money.
Back then, Stephen Cole, the early Bitcoin investors who compare $600 to $10,000, said that the asset would either trade at $10,000 or crash to zero. He was evidently correct.
Nevertheless, this time, he thinks it is either $100,000 or zero. He further says there is no chance for in outcome somewhere in between.