Bitcoin Could Peak at $45K in May, Analyst Says

Bitcoin Could Peak at $45K in May, Analyst Says

by Virtusenews
17. April 2023
Bitcoin Could Peak at $45K in May, Analyst Says

The cryptocurrency seems to be mirroring its performance in first-half 2019, when it more than tripled in valuation after a yearlong bear market.

Bitcoin (BTC) is closely following its early 2019 surge, and prices could peak at around $45,000 next month, according to Vetle Lunde, a senior analyst at K33 Research.

The largest cryptocurrency by market value has soared 80% this year, beating traditional risky assets, including the tech-heavy Nasdaq index, by a wide margin. The rally comes after a 12-month decline, when prices fell 76% and bottomed out last November.

The drop and subsequent recovery are analogous to the pattern seen in the 2018-19 bear market in terms of length and trajectory, according to Lunde.

“Bottoms in both cycles lasted for approximately 370 days. And the peak-to-trough return after 510 days of both cycles reached 60%,” Lunde said in a note sent to clients last week. “In 2018, the bear market rally topped 556 days after the 2017 peak, on June 29, 2019, with a 34% drawdown from the peak.

“While history is far from likely to repeat in a similar fashion if the fractal were to continue – BTC would peak around May 20 at $45,000,” Lunde said.

Bitcoin fell 84% in 2018, with prices bottoming near $3,100 in December. The trend changed in the following months, with prices climbing to $3,700 by the start of 2019 and rising as high as $13,800 by the end of June.

CoinDesk - Unknown

Bitcoin’s recovery from bear cycle bottom in 2022 vs recovery from the 2018 bottom (K33 Research)

Share this article:

divider graphic

Related Articles

Subscribe to Virtuse News
graphical divider
arrow-up icon