The Pomp Letter: Bitcoin’s Price Has Doubled Quickly After Every New All-Time High

Bitcoin broke its prior all-time high of $69,000 on Tuesday. While it only hit $69,200 before sharply pulling back, the uptrend remains in place. And several factors point to bitcoin continuing higher in the coming months.

The upcoming halving event in April will cut new supply coming to market in half. And demand has soared since the SEC approved 11 ETFs that buy and hold bitcoin. So where can the metal go from here?

In the four prior times bitcoin has broken all-time-highs, moves have been fast and furious. Two breakouts in 2013 resulted in the price doubling in 10 and 18 days.

A new high breakout in March 2017 saw bitcoin then double in 84 days.

And in December 2020, once bitcoin hit a new all-time high, it doubled in just 18 days.

Today’s combination of increasing institutional interest and another halving points to another potential double this year.

From its all-time highs, a double would take bitcoin to $138,000.

Given bitcoin’s existing move in the past few months, some pullbacks along the way will be likely. History suggests those pullbacks should be bought.

But it may also be a sign that investors have their last chance to buy bitcoin relatively cheaply. The one-two combination of new all-time highs and a halving point to further gains this year.

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