Analysis: Crypto Heats Up As $35 Billion Enters Market In Under A Month

Bitcoin is still trading around the $103,000 mark, although the upward momentum it started in May has exhibited a slowdown in the past seven days.

A new analysis suggests that the Golden Ratio Multiplier, a long-term cycle indicator, has reached Level 5, which could see Bitcoin hit $160,000 later this year.

This model, which previously called the Bitcoin top in 2021, is known for incorporating logarithmic models with Fibonacci-derived multipliers to anticipate Bitcoin’s macro trends.

One analyst Examined Bitcoin Tops

Popular crypto analyst CryptoCon, took to X to highlight the reliability of the Golden Ratio Multiplier in predicting Bitcoin’s price top in each cycle.

This indicator, among the few to accurately call the April 2021 cycle top in real time (same as 2017 and 2013), has already clocked a mid-top for the current cycle in March 2024.

CryptoCon explained that Bitcoin has already hit Level 4 of the multiplier chart this cycle, but this isn’t the final peak. “We’ve already hit our cycle top level this cycle once, but this was for the cycle mid-top in March 2024, which means we’re bound to do it again,” he said.

The Level 5 band now sits around $160,000 and continues to trend upward. Drawing a parallel to past cycles, the analyst noted that the structure of the current cycle shows strong similarities to the 2015 to 2017 period, when Bitcoin saw a gradual build-up followed by an explosive breakout.

This current market phase is seen as equivalent to April 2017, right before Bitcoin went on a rally in the months that followed.

Golden Multiplier Ratio Suggests $160k Is Next Major Target

The chart accompanying CryptoCon’s post shows each band, ranging from Level 1 to Level 10, is based on a multiplier level derived from the 350-day moving average.

Bitcoin topped at various levels: Level 10 in 2011, Level 9 and 8 in 2013, Level 7 in 2017, and Level 6 in 2021. The current cycle’s peak should most likely be Level 5.

Now, should the market continue to respect this structure, then Bitcoin could be setting up for a rally toward the Level 5 mark of $160,000 later this year, which could mark the final high of this cycle. The current range around $103,000 may well be the calm before the final breakout. “Slower buildup, then all at once,” the analyst said.

At the time of writing, Bitcoin was trading at $102,971.