As an analyst with over two decades of experience in traditional financial markets and a keen interest in the cryptosphere, I find myself intrigued by the latest bullish projection for Bitcoin‘s price. Having witnessed numerous market cycles and trends across various asset classes, I can’t help but be captivated by the audacious target of $178,000 put forth by Tony “The Bull” Severino.
On Friday afternoon, December 20, the price of Bitcoin dipped to approximately $92,000 following the US Federal Reserve’s interest rate reduction, causing a significant drop in the crypto market. However, by the end of the same day, Bitcoin appeared to be bouncing back, surpassing the $97,000 mark once again.
Instead of investors eagerly anticipating Bitcoin’s price to once more reach its all-time high of $108,135, a well-known crypto analyst has offered a daring prediction for the digital currency’s future value. Here follows an explanation of the reasons behind this fresh bullish outlook for Bitcoin’s price.
Can Bitcoin Price Repeat This 86% Rally?
In a recent update on platform X, Tony “The Bull” Severino, head of research at NewsBTC, presented an intriguing prediction for Bitcoin’s price. Based on his analysis as a CMT-certified crypto specialist, Bitcoin could potentially surge to a maximum of $178,000.
This optimistic forecast relies on the Bitcoin’s price fluctuations in correlation with the Bollinger Bands. The Bollinger Bands is a charting tool made up of three lines – a middle line (simple moving average), and an upper and lower line. This technical indicator, used in market analysis, assists in evaluating the volatility within financial markets.
As Severino points out, the daily value of Bitcoin has recently been tested against the upper limit of its monthly Bollinger Band. Historically speaking, such an occurrence often signifies the beginning of substantial price increases in the past.
More recently, a similar price surge happened in late January 2024, which led to an 86% increase, reaching the previous peak of $73,737. If history tends to repeat itself, Bitcoin’s price might experience another 86% rise from its current level, potentially hitting a new record high of around $178,000.
Currently, Bitcoin’s value hovers approximately at $97,265, marking a 0.8% rise over the last day. However, it’s important to note that Bitcoin has seen a 4% drop when considering its performance over the past week.
Here’s What Needs To Happen First
It’s plausible that the Bitcoin price reaching $178,000 isn’t as far-fetched, considering its recent trends. However, current on-chain data indicates significant resistance at approximately $97,500 and $99,800 levels that Bitcoin must surpass to achieve such a high value.
As per crypto analyst Ali Martinez’s insights on topic X, approximately 924,000 wallets purchased around 1.19 million Bitcoins within the specified price range. These buyers, who are at a break-even point due to losses, might decide to sell their holdings within this price band, which could lead to a decrease in prices as it increases the supply and puts pressure on the market to drop.
Martinez pointed out that if the cost of Bitcoin surpasses this point, investors could witness Bitcoin reaching its previous record high price and potentially setting a new one.
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2024-12-21 15:40