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The price of Bitcoin fell to around $92,000 on Friday afternoon, December 20, after the US Federal Reserve’s interest rate cut caused a sharp sell-off in the crypto market. However, the major cryptocurrency seems to be recovering well and returned above the $97,000 level on the same day.
While investors would be hoping for the Bitcoin price to regain its current all-time high of $108,135, a prominent crypto analyst has put forward a bold target for the market leader. Below is the reason behind the new bullish target for Bitcoin price.
Can Bitcoin Price Repeat This 86% Rally?
In a new post on the X platform, NewsBTC research head Tony “The Bull” Severino says shared an interesting forecast for the price of Bitcoin. According to the CMT-certified crypto analyst, the flagship cryptocurrency looks poised to reach a peak of $178,000.
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This bullish projection is based on Bitcoin price movement against the Bollinger Bands. The Bollinger Bands is a three-line indicator; a simple moving average (the middle band) and an upper and lower band. This technical analysis tool helps assess the volatility of the financial markets.
According to Severino, the price of BTC on the daily time frame has retested the monthly upper Bollinger Band. From a historical perspective, this action has marked the beginning of significant price increases in the past.
Most recently, a similar retest occurred in late January 2024, followed by an 86% surge to the former all-time high of $73,737. Severino noted that if history repeats itself, the Bitcoin price could also see an identical 86% increase from the current price point to reach a new all-time high of $178,000.
At the time of writing, Bitcoin’s price is around $97,265, reflecting a 0.8% increase in the past 24 hours. Nevertheless, the major cryptocurrency is still down 4% on the weekly time frame.
This is what needs to happen first
The $178,000 target may not be that outrageous for the Bitcoin price, especially given its performance in recent months. However, the latest on-chain data shows that the market leader has major resistance to overcome around $97,500 and $99,800.
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According to crypto expert Ali Martinez on Xmore than 924,000 addresses bought more than 1.19 million BTC within the above price range. This becomes a resistance because buyers within the price range would want to sell their assets to break even after incurring losses; this puts downward pressure on prices.
However, Martinez noted that if BTC’s price manages to successfully cross this level, investors may see the leading cryptocurrency return to all-time highs and perhaps forge a new one.
Featured image created by DALL-E, chart from TradingView