The previous round of Bitcoin bull market pattern indicates that the current bull market may top out at $160,000, and then bottom out at $25,000

While the digital currency market value has grown significantly, many crypto asset supporters are wondering how far the next bull run will go. If the next round of Bitcoin bull run follows a similar pattern, then the crypto asset has a good chance of reaching $160,000 per unit.

As of press time, the size of the cryptocurrency economy has far exceeded $500 billion and is now hovering around $538 billion. The surge in crypto prices in 2020 has led many crypto supporters to believe that the Bitcoin bull run has begun.

At a price of about $18,977, Bitcoin is very close to its all-time high in 2017. Countless people believe that Bitcoin will easily reach a six-digit value in the future, crossing the $100,000 area.

For example, in a recent interview, Mike McGlone, senior commodity strategist at Bloomberg Intelligence, discussed Bitcoin maintaining its current levels. In the report, McGlone said that it is possible for the BTC price to add another zero in the next 1-2 years.

A large number of Bitcoin enthusiasts also believe that BTC may reach $100,000 or even higher. On Twitter and Reddit forums, discussions about this price range are very common. For example, YouTuber Colin Talks Crypto tweeted on Sunday about the Bitcoin bull run model.

The chart shared by Colin shows that BTC has had three previous bull runs, in 2011, 2013, and of course 2017. In 2011, Bitcoin soared to $31 for the first time in history, but then lost 94% of its value.

Then during the economic turmoil in Cyprus and the heyday of the exchange Mt Gox, BTC soared 37 times to $1,153 according to Colin’s chart. In the subsequent two-year bear market in 2014 and 2015, BTC lost 85%. In 2017, BTC saw its biggest bull run to date, hitting $2,078 on some exchanges around the world on December 17 of that year.

After the 2017 Bitcoin bull run, Colin’s chart shows BTC taking an 84% dive, hitting a low of $3,191. The rest of his chart shows a bunch of question marks because the future results have yet to materialize.

“This chart shows that historically, Bitcoin has gone up 37x and 17x peak to peak,” Colin said in his tweet. “Even if we assume this pattern continues and a multiplier drop occurs, it’s reasonable to expect 8x growth from the previous ATH.” The YouTuber added, “$20,000 x 8 = $160,000/BTC.”

Colin further added that he believes that “Bitcoin reaching $160k is a very conservative estimate.” “Similarly, I think assuming BTC will only go to $50k is a ridiculous estimate. $50k would only be 2.5x the previous ATH.” He noted that “BTC bull runs have never even been this small before.”

Now, if BTC peaks at $160,000, jumping 8 times higher than its previous all-time high, there is also the possibility of a huge selling pressure pattern. If we assume that the conservative decline is around 84% after peaking at $160,000, the price of BTC will eventually bottom out at around $25,600.

Of course, we don’t know if BTC will follow a similar path or the hypothesized pattern, and it is very possible that the price of BTC will follow the opposite trajectory. In addition, BTC naysayers like Peter Schiff believe that, ultimately, Bitcoin will be worthless.

“The idea that Bitcoin’s value comes from the past work required to verify information encoded on the blockchain is nonsense. If I toiled to dig a hole, then filled it up with dirt, what value did my labor create? Effort that does not produce value has no value,” Schiff said on Twitter on Friday.