- Adjusting Bitcoin Price for Inflation (2021 vs. 2024)
- Bitcoin Eyes $65K for a Higher High
- Megaphone Pattern and Bitcoin’s Price Growth Potential
Bitcoin’s price is currently 14% below its all-time high, and favorable market conditions have produced targets of over $80,000 in the coming weeks. However, a new all-time high of around $100,000 might not be as impressive a feat when adjusting for inflation.
Adjusting Bitcoin Price for Inflation (2021 vs. 2024)
Luke Broyles, a Bitcoin analyst, argues that BTC crossing the elusive $100,000 mark will 'barely' match BTC’s buying value in 2021. In an X post, Broyles highlights that, if adjusted for inflation, the ATH price from 2021 will be $83,000 at the moment. Data derived via the U.S. inflation calculator suggests this is fairly accurate. An item bought around $69,000 (assuming people bought BTC at the 2021 top) would currently be priced at $80,159.88, with a current cumulative inflation rate at 16.2%.
Bitcoin Eyes $65K for a Higher High
BTC price is up 18% over the past 14 days despite September being a historically bearish period. Now, Bitcoin is facing its final test before undergoing a bullish trend shift. As shown in the one-day chart, Bitcoin has been posting lower highs and lower lows since March 2024. Now, Bitcoin is currently looking to flip the resistance/supply zone at $65,000, which will lead to a change of character (ChoCH). If $65K can be flipped into support, the long-term downtrend should undergo a change, producing a new uptrend, with immediate resistance above $65,000 at around $71,500.
Megaphone Pattern and Bitcoin’s Price Growth Potential
Last month, Cointelegraph reported a potential breakout that could happen in September, which may eventually result in a rally toward $86,000. The price action has played out accordingly so far, as a 'megaphone' pattern remains in play for a 34.37% upswing over the next couple of weeks. The megaphone pattern includes a similar setup of higher highs and lower lows, which can either validate a macro top or macro bottom. At the moment, the price is on the rise, which means Bitcoin is closing in on confirming a bottom and on a potential path to higher prices.
Thus, despite Bitcoin's price rise and new high expectations, inflation significantly alters the perception of its value. Investors should account for inflation effects when evaluating the real worth of their assets.
Comments