- According to Lark Davis, Bitcoin could rally up to 600% above the current price.
- The accumulation period before a Bitcoin halving is the best time to build a position.
- The 600% rally may occur during the markup phase following the next Bitcoin halving event.
Bitcoin could rally up to 600% above the current price, according to Lark Davis, a renowned crypto investor and founder of Wealth Mastery. In a recent post on X (Twitter), Davis noted that the accumulation period before a BTC halving has historically been the best time to build a position.
According to Davis, Bitcoin’s acceleration to the predicted 600% rally will occur during the markup phase following the next Bitcoin halving event. He further explained that his predicted target derives from the assumption that the bull top under the current Bitcoin price situation is between $150,000 and $180,000.
Davis used an elaborate screenshot of Bitcoin’s weekly chart from TradingView to further explain his position. The chart showed Bitcoin’s consistent cyclic behavior over the previous halving events. From Davis’ illustration, there are an average of 75 weekly bars in every accumulation period before the Bitcoin halving. Hence, Bitcoin is currently deep into accumulation, with several weeks to go.
It is important to note that the extent of Bitcoin’s price movement based on Davis’ cyclic analysis reveals a diminishing trend. Both the bearish and bullish price movements reveal a diminishing return with every new cycle. Hence, the projected 600% post-halving rally is less than the previous bull run, which was 724%.
However, Davis noted that the current state of Bitcoin’s price is the best time for investors to accumulate and build their portfolios. He affirmed that “this period won’t last forever.”
Bitcoin halving is the event that cuts Bitcoin miners’ block rewards by half. It is encoded into the Bitcoin algorithm and executes after every four years. It is an implementation used to introduce economic control of supply and demand in the Bitcoin ecosystem and will continue until the last Bitcoin is produced in 2140. The next Bitcoin halving is expected to happen in April 2024.