Steve’s 5.3 theory has emerged in the crypto community, predicting the future price of Bitcoin based on its past performance. Steve’s 5.3 theory proposes that the returns of Bitcoin from cycle bottoms to tops will decrease by 5.3 times. This theory suggests that the next cycle top for Bitcoin would be approximately $77,000.
CryptoCon, a renowned crypto news platform, analyzed daily returns from cycle bottoms to tops to test this theory. They discovered that the actual returns in previous cycles were not exactly 5.3 but rather ranged from 4.96x to 5.63x. However, when averaged, these numbers were close enough to support Steve’s theory at an average of 5.31.
The findings gave CryptoCon a range of potential prices for the next cycle top: Lowest at $73,522, Average at $77,122, and Highest at $81,675. Unfortunately, for many Bitcoin enthusiasts hoping for a higher target price of $100,000 or more, these numbers fell short of their aspirations. Such targets would require Bitcoin to exhibit a much lower diminishing return rate than 3.84x. The actual numbers from lowest to highest were as follows:
| Cycle Top | Price |
| Lowest | $73,522 |
| Average | $77,122 |
| Highest | $81,675 |
Will Bitcoin Break Its Fibonacci Pattern?
CryptoCon made an interesting observation regarding Bitcoin’s behavior at cycle tops: it consistently reached Fibonacci extension levels. These extensions are ratios derived from the Fibonacci sequence, utilized to measure price movements and potential reversal points.
In previous cycles, BTC hit Fibonacci extensions of 58.764, 19.764, and 3.618. The current cycle’s lowest Fibonacci extension, calculated from weekly candle bodies, was determined to be 1.618 – suggesting a price of $104,000 with a diminishing return rate of 3.7x compared to the last cycle.
If Steve’s theory holds true and BTC reaches $77,000, it would break its established Fibonacci pattern for the first time. This could signify a shift into a new phase of growth or decline. There is speculation that introducing Bitcoin exchange-traded funds (ETFs) will boost BTC prices by increasing demand and liquidity.
ETFs function as financial products that track an underlying asset or index and can be traded on stock exchanges. They hold the potential to attract institutional and retail investors to cryptocurrencies like BTC, but they also pose regulatory and operational challenges.
Despite ongoing speculation surrounding its future trajectory, BTC remains an exciting investment option known for innovation within finance and technology sectors with promising potential to reshape them both profoundly. As we evaluate whether Steve’s theory holds up, it will be fascinating to watch Bitcoin’s performance.
Related Reading | Chainlink Whales Scoop Up 4M LINK Worth $24M In 10 Days