The world of cryptocurrency is ever-evolving, and Bitcoin remains at the forefront of this digital revolution. Recently, Bitcoin’s price experienced a significant drop to approximately $92,000 following a rate cut by the US Federal Reserve. This event triggered a sharp selloff across the crypto market on the afternoon of December 20. However, Bitcoin demonstrated resilience, quickly recovering and surpassing the $97,000 mark later that same day.
Many investors are eagerly anticipating Bitcoin’s potential to reclaim its all-time high of $108,135. Against this backdrop, a well-regarded crypto analyst has presented an ambitious new target for Bitcoin’s price. Below, we delve into the reasoning behind this bullish forecast for the leading cryptocurrency.
Can Bitcoin Price Repeat This 86% Rally?
In a recent analysis shared on the X platform, Tony “The Bull” Severino, head of research at NewsBTC, offered a compelling outlook for Bitcoin’s price trajectory. The CMT-certified crypto analyst suggests that Bitcoin might be poised to reach an impressive $178,000. This projection stems from Bitcoin’s price movement relative to the Bollinger Bands, a technical analysis tool that consists of three lines: a simple moving average (the middle band) and two bands that indicate market volatility.
Severino’s analysis indicates that Bitcoin’s price on the daily chart has retested the monthly upper Bollinger Band. Historically, such retests have often preceded substantial price rallies. A notable example occurred in late January 2024, resulting in an 86% rally to the previous all-time high of $73,737. Should this historical pattern repeat, Bitcoin could potentially rally 86% from its current price, reaching a new record high of $178,000.
As of this writing, Bitcoin is trading at approximately $97,265, marking a 0.8% increase in the past 24 hours. Despite this, the cryptocurrency has experienced a 4% decline over the past week.
Here’s What Needs To Happen First
Achieving the $178,000 target for Bitcoin might not be as far-fetched as it seems, given its recent performance. However, the latest on-chain data indicates a critical resistance zone that Bitcoin must overcome. This zone ranges between $97,500 and $99,800, presenting a formidable barrier for the market leader.
According to Ali Martinez, a crypto analyst on X, over 924,000 addresses acquired more than 1.19 million BTC within this price range. These addresses represent a resistance point, as holders may sell their assets to break even, exerting downward pressure on Bitcoin’s price.
Nonetheless, Martinez highlights that if Bitcoin successfully surpasses this resistance level, investors could witness a return to its all-time high and potentially see the formation of a new record high.
