The price of Bitcoin has doubled in the past 75 days, prompting some analysts to question whether the market is approaching over-extension.
However, historical analysis from Bitcoin monitoring team CaseBitcoin suggests the Bitcoin markets could accelerate further, noting that BTC’s “doubling time” — the time taken for price to increase by 100% — shrunk down to just 12 days just before the peak of the 2017 bull run.
3/ How low can it get? In 2017, the fastest doubling pace - 12 days - happened on December 7th, nine days before the 3yr peak: pic.twitter.com/CgyIjDBJwU
— CaseBitcoin (@case4bitcoin) March 16, 2021
CaseBitcoin notes the fastest doubling time recorded during the current market cycle was on Jan 7th, with BTC surging from $21,000 to $42,000 in just 22 days.
The firm suggests there are similarities between January’s market action and that which occurred during August 2017 — the “middle period of the 2017 bull market.” Back then, Bitcoin’s price doubled over just 26 days to tag $5,000 for the first time, before slumping by 40% in the following weeks. Speaking of the recent run up, CaseBitcoin concluded:
”Generally, the last few months look like that middle period of the 2017 bull market, with doubling times mostly under 100 days, but never under 20.”
“It’ll be interesting to see if doubling-times as fast as the end of the 2013 and 2017 cycles happen this time around too,” the analysts added.
Back in 2013, Bitcoin’s doubling time shrunk down to just four days within one week of the bull season’s peak.
Many analysts believe the current bull market has more room to grow, with the founders of crypto data aggregator Glassnode sharing data showing that the decline in Bitcoin’s liquid supply — an estimate as to how many coins are freely circulating and not locked up by “illiquid entities” — has accelerated since the start of 2021.
Despite recent volatility, #Bitcoin supply is still drying up at astonishing rates for this time around in the cycle. https://t.co/yslda1jUha pic.twitter.com/y1SInrBjEF
— Jan & Yann (@Negentropic_) March 16, 2021
The data also shows that Bitcoin’s liquid supply has been falling significantly since April 2020, with Glassnode having estimated 78% of circulating BTC was already illiquid as of December 2020.