Bitcoin Makes Biggest Weekly Price Gain Since October

Bitcoin logged double-digit price gains last week, confirming a reversal from a six-month downtrend.

The top cryptocurrency by market cap gained 11.2 percent in the seven days to Jan. 12, the biggest weekly gain since October, according to CoinDesk's Bitcoin Price Index.

Bitcoin has managed to score gains in just three weeks.

Further, bitcoin suffered losses in 15 out of 27 weeks, with two weeks ending roughly flat.

Prices fell from highs above $13,000 to $6,425 during the period, establishing a series of lower highs and lower lows on the weekly chart.

With the breakout, the odds of bitcoin repeating history by crossing the 2019 high of $13,880 ahead of the May 2020 mining reward halving have strengthened.

Bitcoin bottomed out near $150 in January 2015 and rose to a high of $502 in November 2015, confirming a bullish reversal.

Prices then fell back to $365 in February 2016 before hitting a new cycle top $778 in June - a month ahead of the reward halving, which took place in July 2016.Note that the high of $778 reached in June 2016 was the highest price from the bear market low of $150, but was well short of the record high of $1,153 reached in December 2013.Similar price action was seen in the 12 months to November 2012, when bitcoin underwent its first reward halving, as noted by Rekt Capital.

If history is a guide, bitcoin could clock highs in the range of $13,880 to $20,000 before the third halving, due in four months.

The bulls also failed to secure a daily close above $8,200 on Jan. 11.With the breakout confirmed on the weekly chart bitcoin looks set to scale $8,200 and challenge recent highs above $8,460.