Bitcoin (BTC) cost is portraying a similar trend seen in April 2022, when BTC surged from $5,000s to $xiv,000 within 2 months. Based on the similarity of the price action, there is a possibility that the summit-ranked cryptocurrency by market place capitalization could gear toward a new local peak in the 2nd half of 2022.

After a cost drop correct earlier the halving to $8,200 on May 11, BTC recovered swiftly to over $9,100 inside a 48-hour span. It indicates the strength of the current momentum of BTC.

Fractals are typically accurate, peculiarly when matched with strong narratives

A Bitcoin halving occurs one time every iv years. In the past 11 years, the block reward of the Bitcoin blockchain network halved 3 times. Each time a halving happened, it triggered a gain of over two,500% in the following months.

A halving has a long-term issue on the cost of Bitcoin because information technology is the only event or machinery that can affect the new supply of BTC. Bitcoin replicating a price trend last seen in mid-2019 during the week of halving tin be considered a positive short-term project considering it comes after a steep sell-the-news drib.

In early May 2022, the cost of Bitcoin started to recover from its driblet to the low-$3,000s. Coincidentally, BTC dropped to every bit depression equally $three,600 in March 2022, only two months ago.

The price trend of Bitcoin in mid-2019. Source: Tradingview

The price trend of Bitcoin in mid-2019. Source: Tradingview

By May 30, the cost of Bitcoin reclaimed $nine,100, and after a brief pullback to $7,500, it started to rally. By June 26, 2022, BTC peaked at $13,920 on BitMEX, marking a local high point.

The time period of the recovery and the toll levels match the current price movement of Bitcoin.

In March 2022, BTC/USD started to recover from $iii,600, primarily boosted past existent retail demand coming from Coinbase. The exchange said at the time:

Simply beyond simply a blitz, 2 things are clear: customers of our retail brokerage were buyers during the drib, and Bitcoin was the articulate favorite. Our customers typically buy lx% more than than they sell but during the crash this jumped to 67%, taking advantage of market troughs and representing strong demand for crypto assets even during extreme volatility.

Every bit record-high retail coincided with increasing institutional demand every bit seen in Grayscale's Q1 2022 report, Bitcoin continued its rally. Somewhen by the first calendar week of May 2022, BTC rose to as high as $x,085 on BitMEX.

Bitcoin price trend is showing similarity with the fractal in April 2022. Source: PabloPicasso

Bitcoin price trend is showing similarity with the fractal in April 2022. Source: PabloPicasso

Potential variable that can sustain the recent bitcoin rally

A strong argument that supports a continuation of the ongoing Bitcoin rally is the increasing spot volume alongside a steady network hash rate.

Unlike previous parabolic rallies, the run-up from $iii,600 to $10,085 in the past 2 months was led by Binance, Coinbase and other spot exchanges.

The open interest of BitMEX, Binance Futures, and OKEx remained relatively low, peculiarly considering the upside momentum BTC showed.