- Bitcoin (BTC) has been tipped to reach a new all-time high price; however, it would first have to breach three crucial resistance levels.
- After breaching the final psychological level, experts believe that Bitcoin could go all the way to $250k before the end of the cycle.
Bitcoin has just recovered from its daily low of $100k, printing 10% gains on its weekly price chart to trade at $103k. According to our market data, the asset is gearing up for an upsurge as its daily trading volume surges by 6% to $58 billion. Pending that run, analysts have highlighted three crucial levels that Bitcoin must breach to set a new all-time high price record.
The first is termed the Initial barrier. According to analysts, this level is found at the $104,780 zone, and it represents the “prior local highs” or the first resistance level of the current rally. A break above this level could increase the buying pressure.
The second level to take note of is found at the $106,000 mark. Analysts explain that this represents the extended Fibonacci retracement targets. Several investors may be tempted to take profit at this point, leading to a possible pullback.
Fascinatingly, a successful break above this level would also position the price ahead of another psychological level found at $106,000. From here, the asset would have to deal with the final resistance level at $109k.
Bitcoin Price Action and Experts’ Opinion
Jan3 CEO Samson Mow believes that the asset could go as high as $1 million, representing 10x from the current level. As featured in our previous news story, Mow argues that the present value of Bitcoin does not accurately represent the growing institutional demand and retail participants.
For now, Bitcoin is slowly building momentum as the 50 EMA is on the verge of surpassing the 100 EMA to create a bullish crossover. Meanwhile, a pullback is expected at the current level as the asset enters the overbought territory of the Relative Strength Index (RSI).
Confirming this analysis, a popular analyst identified as PlanB has indicated that there could be multiple RSI readings above 80 this cycle. Specifically, at least four of these levels would be witnessed in months, as happened in the previous bull cycles in 2013, 2017, and 2021.
When this happens, each month could produce an average return of 40%, positioning the cycle peak at $400,000.
So I think we will see those high RSI numbers again – at least four times. And those high RSI numbers are associated, of course, with high monthly returns, monthly returns of over 40% per month. So if we have from the current level of on average $100,000, four months of 40% that would bring us already in the $400,000 area.
Supporting this technical pattern is the significant increase in Bitcoin adoption. As indicated in our previous news brief, MicroStrategy has accumulated an additional 13,390 BTC for $1.34 billion, creating shortages on exchanges and lining the price up for an upsurge. Also, CNBC analyst Tom Lee has predicted that Bitcoin has the potential to hit $250k, as highlighted in our recent analysis.
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