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The price of bitcoin fell to around $92,000, on Friday afternoon, December 20, after the US Federal Reserve's rate cut sparked a sharp sell-off in the cryptocurrency market. However, the top cryptocurrency appears to be recovering well, having returned above the $97,000 level on the same day.
While investors expect bitcoin price to reclaim its current all-time high of $108,135, a prominent crypto analyst has proposed an audacious target for the market leader. Below is the rationale behind the new bullish target for bitcoin price.
Can bitcoin Price Repeat This 86% Rally?
In a new post on Platform x, NewsBTC Head of Research Tony “The Bull” Severino <a target="_blank" href="https://x.com/tonythebullBTC/status/1870204085250498607″ target=”_blank” rel=”nofollow”>shared An interesting forecast for the price of bitcoin. According to the CMT-certified cryptoanalyst, the flagship cryptocurrency looks set to hit $178,000.
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This bullish projection is based on bitcoin price movement relative to the Bollinger Bands. Bollinger Bands is an indicator that has three lines; a simple moving average (the middle band) and an upper and lower band. This technical analysis tool helps evaluate the volatility of financial markets.
According to Severino, the btc price in the daily period has retested the monthly upper Bollinger Band. From a historical perspective, this stock has ushered in major price rallies in the past.
More recently, a similar retest occurred in late January 2024 and was followed by an 86% price rally to the previous all-time high of $73,737. Severino noted that if history repeats itself, bitcoin price could also see an identical 86% rally from its current price to reach a new record high of $178,000.
At the time of writing, the price of bitcoin sits around $97,265, reflecting an increase of 0.8% in the last 24 hours. However, the top cryptocurrency is still down 4% in the weekly period.
This is what needs to happen first.
In fact, the $178,000 target might not be that outrageous for bitcoin price, especially considering its performance in recent months. However, the latest on-chain data shows that the market leader needs to overcome a major resistance around $97,500 and $99,800.
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According to crypto expert <a target="_blank" href="https://x.com/ali_charts/status/1870267059919069395″ target=”_blank” rel=”nofollow”>Ali Martínez in xMore than 924,000 addresses purchased more than 1.19 million btc within the aforementioned price range. This becomes resistance as buyers within the price range could attempt to sell their assets to break even after suffering losses; This puts downward pressure on prices.
Martinez, however, noted that if the btc price manages to successfully break above this level, investors could see the leading cryptocurrency return to its all-time high price and perhaps forge a new one.
Featured image created by DALL-E, TradingView chart
