Bitcoin exhibited a similar pattern to its price action between July and September 2020, and bulls are anticipating the same bullish outcome.
The total crypto market cap dropped by 2.76% over the past 24 hours to $3.84 trillion, amid a broader market retracement. Specifically, Bitcoin retested $117,000, while major altcoins, including XRP, Solana, and Dogecoin, suffered more significant losses.
Nonetheless, Bitcoin has reclaimed $118,800 today and is still up 27% since the start of the year, fueling optimism that it could rally again in the near term. Further backing this sentiment is a recent analysis that highlights the similarity between Bitcoin’s price development now and back in 2020, when it traded around $11,000.
Similar Price Pattern: The Same Outcome for Bitcoin?
Dan Borovik, a crypto influencer and long-standing Cardano maxi, elicited optimism among the crypto community with a chart shared on Thursday. The daily chart revealed a similarity between Bitcoin’s recent price development and what the market observed five years ago, when the price was under $12,000.
For context, in 2020, Bitcoin broke out from support after a period of price consolidation, rallying from $9,553 on July 20, 2020, to a high of $12,480 on August 17, 2020. BTC maintained the high for a few days, then retraced 14% in two days to retest the support in early September 2020.
After a successful retest, Bitcoin started another phase of parabolic movement, which endured until its April 2021 peak of $64,900. Then, Bitcoin experienced its first major correction from the bullish rally that began at around $10,000 in September 2020. It dropped to $28,754 in June 22, 2021, before resuming an uptrend to the cycle’s peak at $69,000 in November 2021.
Interestingly, Borovik shared that a similar pattern formed on Bitcoin’s recent chart. For perspective, BTC surged after breaking out of a descending channel on November 6, 2024, rising from $69,404 to a peak of $109,354 on January 20, 2025.
However, a downtrend ensued, pushing prices down to retest the support. Bitcoin dropped to $74,441 on April 7, marking the retest. From there, it regained bullish momentum, pumping to its recent all-time high of $123,181.
Bitcoin Going to $500,000
Borovik suggested that, if the 2020 to 2021 rally is anything to go by, then Bitcoin is likely to reach $500,000. Interestingly, this marks a 320% rally from its current price of $118,804 and would also take its market cap to $9.95 trillion.
Notably, his prediction aligns with that of Binance’s co-founder Changpeng Zhao. He predicted that Bitcoin would reach between $500,000 and $1 million this cycle amid a massive institutional influx.
However, Standard Chartered has a different view on when Bitcoin could attain the $500,000 price mark. The top banking institute projected that BTC will reach the price valuation in 2028, three years from now.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
