Experts believe Bitcoin will form a “double bubble” before prices retrace

• 2013 Bitcoin bull run that witnessed 75% drop before 1,750% gain is similar to current price action.
• As Bitcoin changes hands, a repeat of 2013's "double bubble" is more likely. 
• There is an increase in correlation between accumulation by long-term holders and a drop in BTC price.
• The creator of the Bitcoin Stock to Flow model says next months key to predicting year end price for  top crypto asset.

Analysts dismissed Bitcoin's sideways price action from last week, considering that the asset has surged nearly 60% in the month leading up to the horizontal price movement. Experts argue that BTC will have another leg up before concluding its 2021 bull run. 

2013 style "Double Bubble" likely to push BTC price higher before bull run ends

Bitcoin 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 bull run and the one witnessed in 2013. 

The 2013 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 bullrun and whether a 2013-style "Double Bubble" is in the cards for Bitcoin before the end of 2021. 

The "Double Bubble" 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 correlation between BTC accumulation by long-term holders that are less likely to sell (strong hands) and the drop in the asset's price. 

Historically, an increase in 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 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 $100,000 by year end. This implies that the prediction was in line with the "Double Bubble" theory; however, Plan B has recently changed his stance. 

In a tweet, the analyst explained that the asset 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 bullish outlook on BTC. 

Clemente expects Bitcoin 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 supply, driven by the accumulation by large wallet investors and institutions, assuming that aggregate demand for the asset remains unchanged. 

Clemente explains that the current phase is the most potent "on-chain accumulation phase" for Bitcoin, and this is a shakeout before the altcoin targets a price above $50,000. 

According to FXStreet analysts, a crash to the $40,000 level is likely, as Bitcoin lures more investors into long positions. 

 

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