Since July 2020, the price of Bitcoin has been ranging between $10200 and $11800, with a range of 15%. With the exception of some brief volatility spikes, it has been subdued volatility for a long period.
When Bitcoin remains stable for a long time in a tight price range, a large price change usually occurs.Whether Bitcoin will break through in the short term is still remains an uncertainty. But Sorout states it would take three months for Bitcoin to reach $20000 if it really makes a breakthrough.
The daily Bitcoin chart with a trendline. Source: TradingView.com, Mohit Sorout
Why three months for a Bitcoin all-time high after a breakthrough?
According to past price cycles, Bitcoin tends to rise and fall rapidly after a long-term cycle. This pattern historically applied both breakouts and breakdowns.
From May 1 to July 20, the price of Bitcoin fluctuated between $8,800 and $9,800 and stabilized at around $9,100. After two months of consolidation, BTC rose 32% on Binance within 12 days to $12,123.
Considering that Bitcoin will fluctuate sharply after a long period of consolidation, Sorout stated:
"Calm before the storm. If $BTC was to break out today, it would most probably reach its previous ATH of $20k within 3 months."
When asked why it took three months for Bitcoin to reach the previous $20,000, Sorout stated that it is based on observations of volatility.
According to Sorout, the price of Bitcoin may even rise to $20,000 earlier than three months. He points out:
"An observation based on how violent the rallies are after subdued periods of volatility. Could even be earlier."
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