If a fractal plays out on Bitcoin price charts matching the previous halving post-consolidation breakout, the cryptocurrency could keep on climbing from here.
The target, if the rally takes a similar path, would put valuations of the top cryptocurrency at between $15,000 to $17,000 before peaking.
Bitcoin Breaks Out: What Happens Next Will Be Fast and Furious
Bitcoin price exploded early last week on the heels of gold setting a new record and the government committing to another $1 trillion in stimulus spending.
Inflating money supply has prompted a flight to hard assets like precious metals and cryptocurrency. Digital gold and its physical counterpart have both benefited from the recent weakness in the dollar.
Bitcoin earns its comparison to the precious metal due to several key similarities. For instance, gold has a finite supply and the cryptocurrency is digitally coded so only 21 million BTC will ever exist.
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This supply is slowly tricked out over the course of years. Every four years give or take, the amount of BTC that is released freely into the market is then slashed in half in an event called the halving.
Several supply based theories exist that attempt to give a future valuation to the asset based on scarcity. Those who follow this belief expect a repeat of past cycles