Analysts dismissed Bitcoin's sideways price action from last week, considering that the BTC has surged nearly 60% in the month leading up to the horizontal price movement. Experts argue that BTC's price will have another leg up before concluding its 2021 bull run.
Bitcoin BTC price is hovering around the $48,000 level after weeks of accumulation by whales and large wallet investors. Analysts are drawing parallels between Bitcoin's current price bull run and the one witnessed in 2013.
The 2013 BTC bull run was characterized by a 75% drawdown from highs ahead of a 1,750% rally. Both events occurred less than six months apart. This has raised questions about the nature of the current bull run and whether a 2013-style "Double Bubble" is in the cards for Bitcoin price before the end of 2021.
The "Double Bubble" Bitcoin theory has been around for quite some time now. In the last week of June, Luke Martin, host of the "Profit Maximalist" show, tweeted:
Analysts have founded the theory loosely on the price correlation between BTC accumulation by long-term holders that are less likely to sell and the drop in the asset's price.
Historically, an increase in Bitcoin BTC accumulation by strong hands in the long term is followed by an explosive rise in the asset's price. A similar scenario played out in 2013 when the initial run to a local high was followed by a sudden drop in BTC price, and continuous accumulation triggered a parabolic price rise.
At the beginning of 2021, the creator of the Bitcoin Stock-to-Flow model (S2F) used to predict BTC prices in the long-term was convinced that the asset would hit the $100,000 level by year-end. This implies that the prediction was in line with the "Double Bubble" theory; however, Plan B has recently changed its stance.
In a tweet, the analyst explained that Bitcoin could hit as high as $100,000 or as low as $30,000, and the price action relies on the next few months.
Will Clemente, lead insights analyst at Blockware Team, a Bitcoin mining, software, and trading company, took to Twitter to share his price bullish outlook on BTC.
Clemente expects Bitcoin BTC price to go higher over the coming months solely due to the "supply shock" developing in the asset.
A Bitcoin "supply shock" is expected to arise from a sudden drop in Bitcoin BTCsupply, driven by the accumulation by large wallet investors and institutions, assuming that aggregate demand for the BTC remains unchanged.
Clemente explains that the current phase is the most potent "on-chain accumulation phase" for Bitcoin BTC, and this is a shakeout before the altcoin targets a price above $50,000 level.
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