Bitcoin Price Surge: $138,000 Possible in 3 Months
With a potential price surge on the horizon, investors are advised to keep a close eye on Bitcoin's price movements and the key resistance levels that may trigger a breakout. The cryptocurrency's historical performance and current market trends suggest a potential upside, but volatility and uncertainty remain inherent in the market.
Bitcoin's price may reach $138,000 in the next three months, according to network economist Timothy Peterson, who cites favorable macroeconomic conditions and historical performance as indicators of a potential price upside.
Despite the current challenging environment, BTC/USD has historically performed well after the US High Yield Index Effective Yield has dropped. This has happened 38 times since 2010, with a 71% chance of Bitcoin price increase within 3 months, and a median gain of 31%. Peterson predicts a 62% gain for Bitcoin to reach $138,000, with a floor of $75,000.
Swissblock, a crypto analytics firm, also believes the bearish trend for Bitcoin may be over, citing a historically bullish signal. Bitcoin has broken out of a bearish compression pattern into a bullish quadrant, indicating potential upward price momentum. Historically, this signal has led to more upside, even if there is a brief dip. The firm also notes that long-term holders are holding firm and not selling out of fear, with data showing the worst sell-off has ended.
Bitcoin whales have also resumed accumulation, with holdings reaching a one-year high. Before a potential price increase, Bitcoin may fall by around 5% to $80,000. However, analysts suggest a breakout from the key resistance level of $85,000-$86,000 may be imminent, potentially leading to a surge towards the $90,000-$91,000 barrier.
The cryptocurrency's current price action resembles May 2021's performance, before the bull run resumed. Strong spot buying pressure is necessary to break the 50-day EMA resistance and resume the rally. As the market continues to evolve, investors and analysts will be closely watching Bitcoin's price movements and the underlying macroeconomic conditions that may influence its trajectory.