A trader noted that if Bitcoin achieves even half of its 2021 price discovery gains, it could still reach $150,000.
According to speculators, Bitcoin has now entered the price discovery phase, which could result in “insane long opportunities” in the coming months.
On December 2, trader and analyst ‘Daan Crypto Trades’ on X observed that Bitcoin has entered its price discovery phase for this cycle.
He also noted that the asset has been trading above its previous all-time high for nearly a month.
He noted that Bitcoin experienced a 1,600% increase during the 2017 bull market and a 245% increase during the 2021 bull market after it entered the discovery stage, as evidenced by its previous gains in the past two cycles.
“Even if we were to complete half of the 2021 move, the price would still be approximately $150K,” he stated.
The process of price discovery involves the interaction of buyers and sellers to determine the equitable market price of an asset.
A new phase of the process commences when the asset trades above all-time highs.
Charles Edwards, the founder of Capriole Fund, stated, “Every cycle, we experience 4-7 months of extraordinary Bitcoin price discovery returns.”
He also noted that the asset experienced a 40% increase and broke monthly candle records in November.
“He anticipated that the opportunities that will arise in the upcoming months will be absurdly long.”
Historically, December has also been a favorable month for BTC.
In the early hours of December 2, Bitcoin regained $98,000.
However, it has since fallen below $97,000, trading at a mere 3.3% below its all-time high of $99,645 on November 22.
Analysts have informed Cointelegraph that there may be additional price moves in December.
Markus Thielen, the founder and CEO of 10x Research, stated to Cointelegraph, “Historically, Bitcoin has experienced an average increase of +10% in December, with blockbuster performances in 2010, 2011, and 2020.”
He further stated that this was particularly evident during years of halving, as “the December returns were +6% in 2012, +31% in 2016, and +47% in 2020—averaging a remarkable +28%.”
He stated that “all three halving years experienced positive returns in December.”
At the same time, John Glover, the chief investment officer at Ledn, a crypto financial services firm, informed Cointelegraph that a more substantial correction is still feasible.
Nevertheless, it is also feasible that momentum may persist until the $125,000 region, he stated, before concluding:
“There’s no real threat of a drastic sell-off unless we breach the March 2024 high at ~$74k, so I expect the market to continue adding to longs on any dips.”
