Bitcoin Price Could Rally To $178,000 If History Repeats — Here’s Why
On the afternoon of Friday, December 20, after the Federal Reserve announced an interest rate cut, the price of Bitcoin fell to around $92,000. Rate cuts trigger sharp sell-off in the cryptocurrency market. However, the major cryptocurrency appears to have recovered well, moving back above $97,000 levels on the day.
While investors would like to see Bitcoin price return to its current all-time high of $108,135, a prominent cryptocurrency analyst has a bold target for market leaders. Here’s the rationale behind a new bullish target for Bitcoin price.
Can Bitcoin Price Repeat Its 86% Rise?
In a new post on the X platform, NewsBTC head of research Tony “The Bull” Severino shared Interesting predictions for Bitcoin price. According to CMT certified cryptocurrency analysts, the flagship cryptocurrency appears poised to reach highs of $178,000.
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This bullish prediction is based on Bitcoin price action related to Bollinger Bands. Bollinger Bands is an indicator with three lines; a simple moving average (middle band) and an upper and lower band. This technical analysis tool helps assess the volatility of financial markets.
Severino stated that BTC price on the daily time frame has retested the monthly Bollinger Bands upper limit. From a historical perspective, this action marked the beginning of significant price increases in the past.
Most recently, a similar retest occurred in late January 2024, followed by an 86% price increase to reach the previous all-time high of $73,737. Severino pointed out that if history repeats itself Bitcoin price could also rise by a similar 86% from the current price point to reach a new record high of $178,000.
As of this writing, the price of Bitcoin is around $97,265, up 0.8% in the past 24 hours. Still, the major cryptocurrency is down 4% on the weekly time frame.
This is what needs to happen first
In fact, a $178,000 target might not be too 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 major resistance near $97,500 and $99,800.
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According to cryptocurrency experts Ali Martinez Talks Xmore than 924,000 addresses purchased more than 1.19 million BTC in the above price range. This becomes a headwind as buyers within the price range may seek to sell assets to break even after losing money; this puts downward pressure on prices.
However, Martinez noted that if the price of BTC manages to break above this level, investors may see the major cryptocurrency return to its previous levels. historical high price And maybe build a new one.
Featured image created by DALL-E, chart from TradingView
