After a three-month lull in the market, lasting from the may crash until bottoming out in mid-July, the market seems to be back on track. On-chain analysts are, almost in unison, predicting the continuation of the bull market.
The supercycle theory we predicted in one of our articles seems to be coming to fruition, as we will likely see a double or even triple peak cycle.
With so much bullish sentiment, the milestone of a $100,000 bitcoin seems to be only a matter of time. In this article, we’ll be trying to calculate a possible timeframe for a $100,000 Bitcoin and how we can best prepare ourselves when it happens.
When Bitcoin goes parabolic
Historically, the last quarter of the year is an excellent time to be invested in the crypto market. We should see positive price action until the end of the year, especially in the days leading up to the Bitcoin Taproot upgrade.
Scheduled to go live on November 14, Taproot will bring Bitcoin enhanced privacy features and smart contract compatibility. But while some crypto analysts may predict a market peak in December, the most probable outcome is that 2022 will be an incredibly bullish year.
Cycles are becoming more extended and less volatile over time, making it unlikely that we will see a $100,000 Bitcoin still this year. It’s difficult to measure when we see a $100,000 Bitcoin, but Q1 and Q2 of 2022 seem to be a more realistic prediction.
Planning your exit strategy
How can we best time our exit before the bubble bursts? When bitcoin dominance starts to fall dramatically, and we see Ethereum’s price and dominance enter into a crescendo, that is usually the time to begin exiting the market.
We’ve seen this before in May when the market grew overheated. Ethereum grew almost double in price in the space of 18 days, and coins with less utility, like Ethereum Classic, saw a massive pump. Although markets behave irrationally, they can do so for several months before euphoria starts to fade away, making it difficult to pinpoint the exact peak of a cycle.
That is why a DCA (Dollar Cost Averaging) strategy is the preferable option to minimize risks. “DCAing” the market means to sell your holdings periodically instead of exiting the market all at once. This prevents entering an emotional rollercoaster and buying back your holdings at a higher price.
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