Bitcoin is currently trading around the $103,000 mark, showing a slowdown in its upward momentum that began in May. Despite short-term volatility, the long-term outlook remains bullish. Analysts are turning to long-term cycle indicators for insights, with the Golden Ratio Multiplier standing out for its historical accuracy.
Golden Ratio Multiplier Identified 2021 Top, Now Points To New Peak
The Golden Ratio Multiplier, a logarithmic model incorporating Fibonacci-derived multipliers, has a proven track record. It accurately predicted Bitcoin's tops in 2013, 2017, and 2021. This cycle, it flagged a significant peak in March 2024, interpreted as a mid-top rather than the final high.
Crypto analyst CryptoCon noted that Bitcoin has already hit Level 4 of the multiplier chart this cycle, suggesting another peak is coming. "We’ve already hit our cycle top level this cycle once, but this was for the cycle mid-top in March 2024, which means we’re bound to do it again," he explained.
Golden Multiplier Ratio Suggests $160k Is Next Major Target
The Level 5 band, currently around $160,000, is the next major target. Historical data shows Bitcoin topping at progressively lower levels each cycle: Level 10 in 2011, Level 9 and 8 in 2013, Level 7 in 2017, and Level 6 in 2021. This cycle, Level 5 is the anticipated peak.
If the pattern holds, Bitcoin could rally toward $160,000 later this year, marking the final high of this cycle. "Slower buildup, then all at once," CryptoCon remarked. At press time, Bitcoin was trading at $102,971.
Featured image from Unsplash, chart from TradingView
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