As 2022 comes to an end, Bitcoin (BTC) is extending its sideway trading pattern after a turbulent year mostly dominated by bearish conditions. However, despite Bitcoin consolidation, the asset price movement aligns with a historical trajectory that could build the foundation for the flagship cryptocurrency to reach new highs.
In this line, reputable crypto analyst Vince Prince from TradingView pointed out that Bitcoin has once again formed the ‘Merry Christmas Cycle’ in 2022, a pattern that has emerged over the last three Christmases.
According to Vince’s analysis, Bitcoin has always completed historic highs during the Christmas period under the cycle. Furthermore, he noted that Bitcoin had formed several new all-time highs on Christmas Eve each year.
With Bitcoin’s current price ranking among the yearly lows, the analysts stated that based on the cycle, the maiden crypto has always formed new bottoms that end the bear market and start the new Christmas Cycle.
“The important thing here with the underlying empirical significance of the cycle is that it always worked perfectly in the past, which means that there is a very high possibility given that Bitcoin shows up with the same cycle again,” he said.
Indeed, if the cycle holds, Bitcoin will likely skyrocket to around $1.8 million by Christmas 2026. If the price target is attained, Bitcoin will spike by about 10,614% from the asset’s price at the time of publishing.
Bitcoin holders hit a monthly high on Christmas Day
Although Bitcoin’s price remains depressed, investors are still accumulating the asset. In particular, as of December 25, Bitcoin holding addresses stood at 43,764,748, representing the monthly high. Bitcoin’s lowest monthly holding addresses value was recorded on December 11 at 43,497,484.
Bitcoin price analysis
By press time, Bitcoin was trading at $16,823 as the sideway consolidation extended with no potential trigger for a decisive move in sight.
Notably, Bitcoin has been impacted by macroeconomic factors, a situation complicated by the FTX crypto exchange collapse as investors await a possible price bottom. In this line, a Finbold report indicates that historical analysis points to a possible Bitcoin correction to $9,000. Notably, the position acted as the foundation for Bitcoin’s last all-time high of $69,000.
Based on historical price movement, data also indicates that Bitcoin could be in line for another rally within the next three years. In particular, by considering Bitcoin’s movements in the past, a pattern emerges of a year when the asset achieved its all-time high (ATH) followed by a bear market year.
Notably, legendary investor Bill Miller believes that Bitcoin trading at $17,000 is a remarkable achievement considering the implication of the FTX collapse. Indeed, data indicate that following the FTX debacle, Bitcoin has recovered significantly faster than other capitulation events.
In the meantime, investors will look for a possible Bitcoin rally as the asset aims to become digital gold. Interestingly, following Bitcoin’s previous rally, crypto skeptic Peter Schiff admitted that investor interest in gold faltered as the cryptocurrency tool took center stage.
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