HomeBlogTrading bitcoin shouldn’t be so simple… but it is. | by Stephen...

Trading bitcoin shouldn’t be so simple… but it is. | by Stephen McBride | Coinmonks | Dec, 2024

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In August 2023, when bitcoin (BTC) was trading for $27,000, I told my Venture members it was headed to $150,000.BTC surged 274% since, to $101,000.And I believe it’s going higher than that. I recently updated my bitcoin price target for 2025 to $250,000.How can I be so confident?In my entire career, I’ve never seen any asset that would follow the same pattern over and over again the way bitcoin does.I’m talking about bitcoin’s 4-year cycle.Bitcoin prices have followed a “3 up, 1 down” pattern.Every fourth year, crypto prices plunge. The last time that happened was in 2022.Markets then recover slowly, with the biggest gains being handed out in years 2 and 3, as this table of bitcoin’s annual returns shows.Year 2 is now, and year 3 is next year:Trust me, I tried to look at this with a skeptical eye. Trading bitcoin can’t possibly be that simple. But fact is, the price keeps following the 4-year cycle as if written in stone.Here’s a chart comparing this cycle (black line) to the last two:Source: GlassnodeThe three charts are nearly identical.Here’s another chart looking at bitcoin’s entire history:As you can see, bitcoin price tends to surge every four years around the time of the US Presidential elections. Guess what happened this time around? BTC surged precisely on November 5.When a pattern is so convincing, it’s best to invest alongside it.You could divide the bitcoin cycle into roughly four phases as such:As the above chart shows, the euphoria phase is where things get truly silly to the upside and the lions share of the profits are made.During the accumulation and growth part of the cycle, bitcoin leads the charge. Big money floods in, pushing BTC to new heights.During the altseason, bitcoin still does well, but it’s other cryptos that really start to surge.During the last altseason, for example, Ethereum outperformed bitcoin about 8 to 1. And many altcoins did even better.Two altcoins worth investing in are Helium, or Hivemapper. You’ll find many more in my crypto advisory Venture.Bottom line: We’re in what has historically been the best time to own crypto. The “sweet spot” that’s typically produced life-changing gains.

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