On December 16th, Bitcoin (BTC) experienced a significant surge in price, reaching an all-time high of approximately $106,535. This increase marks the latest development in the cryptocurrency’s ongoing price boom.
Background: MicroStrategy Joins Nasdaq 100 Index
The recent jump in Bitcoin’s price can be attributed, in part, to the entry of its top accumulator, MicroStrategy, into the prestigious Nasdaq 100 Index. This event has sparked optimism among investors and analysts, with many anticipating a continued upward trend for the cryptocurrency.
BTC/USD Daily Price Chart
As shown in the chart above, Bitcoin’s price has surged over 136% in 2024. This impressive growth can be attributed to a combination of factors, including:
- Expectations of pro-crypto policies: The possibility of favorable regulations under Donald Trump’s administration has contributed significantly to the cryptocurrency’s upward momentum.
- Inclusion of crypto-focused firms in major indices: MicroStrategy’s entry into the Nasdaq 100 Index serves as a vote of confidence for the cryptocurrency and its growing institutional adoption.
Veteran Analyst Predicts Bitcoin Could Reach $120,000
Peter Brandt, a renowned technical analyst, has shared a chart outlining his projections for Bitcoin’s price. According to his analysis, the cryptocurrency is on track to break out of a bull flag pattern, which could propel its price toward $120,000.
Bull Flags: A Breakout Pattern
A bull flag forms when the price consolidates within a sideways or downward-sloping rectangle range after a strong price rally. The breakout occurs when the price breaks above the flag’s upper trendline and rises by as much as the previous uptrend’s height.
As of December 16th, Bitcoin’s price was entering the breakout stage of the bull flag pattern. Brandt projects $120,000 as the next likely upside target.
Fibonacci Fractals: A Potential Price Target of $155,500
Based on historical performance and Fibonacci extensions, some analysts believe that Bitcoin could reach a price target of $150,000 to $154,000. This prediction is based on the cryptocurrency’s consistent ability to break past the 1.618 Fibonacci extension level before advancing toward higher extensions.
As of December 16th, Bitcoin had surpassed the 1.618 level at approximately $102,000. The breakout suggests that the next major milestone could be the 2.618 level near $155,500.
Analysts Predict Bitcoin Could Reach $800,000 by 2025
Several analysts have projected that Bitcoin’s price could reach as high as $800,000 by the end of 2025. This prediction is based on factors such as:
- Capped supply: Bitcoin has a fixed supply, which could lead to increased demand and subsequently drive up its price.
- Favorable policy outlook: Pro-crypto policies under Donald Trump’s administration could contribute significantly to the cryptocurrency’s growth.
PlanB, creator of the popular stock-to-flow model, predicts that Bitcoin’s average price will reach $500,000 in 2025. Perianne Boring, founder of The Digital Chamber, echoed this optimism, citing the stock-to-flow model and the possibility of pro-crypto policies under Donald Trump.
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- Bitcoin Could Hit $800,000 by 2025, Analysts Say
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