According to eToro crypto analyst Simon Peters, there may be a new ATH in Bitcoin’s price, but not necessarily anytime soon.
New ATH coming for Bitcoin: the 2013 cycle
BTC’s all-time high price of almost $65,000 was reached on April 14 this year and the current price of around $55,000 is not far behind.
According to Peters, it would be madness to expect Bitcoin’s price to exceed $65,000 anytime soon.
“Bitcoin’s current cycle appears to be playing out similarly to the 2013 cycle. A supply squeeze is underway and BTC is draining off exchanges. A move past ATH this month and or early November would be in line with the pattern of the 2013 cycle, but we can’t be sure”.
However, the analyst describes it as “short-sighted” to focus on the issue of Bitcoin’s new ATH, and suggests focusing on the long term.
In this regard he states:
“We should see prices increase and eventually a new ATH will come. In the short term we could see some resistance at the $58,000-60,000 level, and potentially a pull-back to boot”.
Already on Monday, the price of BTC went as high as $57,800, rejected by the $58,000 resistance without even reaching it. Yesterday it dropped below $57,000 and even briefly touched $53,800. At the current stage, it is hovering between $54,000 and $55,000, and could be ready for a rebound, or a further descent.
HODling explained by Peters
Peters points out that the last seven months have been dominated by so-called “HODling”, which is the holding of open positions on BTC to the bitter end, without selling even during sharp declines.
In this phase, according to Glassnode, more than 2.37 million BTC have moved from short-term to long-term holders, with a dollar value at current prices of about $130 billion.
Suffice it to say that only 166,000 BTC were mined by miners in the same period, so long-term holders have “HODLed” 12.7 times more Bitcoin than mined.
“Ultimately investors in crypto should focus on the long-term benefits and use cases of the tokens. Focusing on short-term price movements is a highly risky approach for anyone to take”.