Bitcoin Price Could Rally To $178,000 If History Repeats — Here’s Why

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The price of Bitcoin fell to around $92,000 on Friday afternoon, December 20, after the US Federal Reserve’s rate cut triggered a sharp sell-off in the cryptocurrency market. However, the leading cryptocurrency appears to have recovered well, having moved back above the $97,000 level on the same day.

As investors hope to see the price of Bitcoin reclaim its current all-time high of $108,135 again, a leading crypto analyst has proposed a bold target for the market leader. Below is the logic behind the new bullish target for Bitcoin price.

Can Bitcoin Price Repeat This 86% Rally?

In a new post on Platform According to certified crypto analyst CMT, the flagship cryptocurrency looks poised to reach $178,000.

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This bullish projection is based on the price movement of Bitcoin in relation to the Bollinger bands. Bollinger Bands are an indicator that has three lines; a simple moving average (the middle band) and an upper and lower band. This technical analysis tool helps evaluate the volatility of the financial markets.

Bitcoin price
Source: TonythebullBTC/X

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 marked the beginning of significant price increases in the past.

Most recently, a similar retest occurred in late January 2024 and was followed by an 86% price surge to the previous all-time high of $73,737. Severino noted that if history repeats itself, Bitcoin’s price could also see an identical 86% rally from its current price to a new record high of $178,000.

As of this writing, the price of Bitcoin is trading at around $97,265, reflecting a 0.8% increase over the past 24 hours. However, the leading cryptocurrency is still down 4% on the weekly period.

Here’s what needs to happen first

In fact, the $178,000 target may not be that much of a stretch for Bitcoin’s price, especially considering its performance over the past few months. However, the latest on-chain data shows that the market leader needs to clear major resistance around $97,500 and $99,800.

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According to cryptocurrency expert Ali Martinez on X, over 924,000 addresses purchased over 1.19 million BTC within the price range mentioned above. This becomes a resistance as buyers within the price range may look to sell their assets to break even after being at a loss; this puts downward pressure on prices.

Bitcoin price
Source: Ali_charts/X

Martinez, however, noted that if BTC price could successfully break above this level, investors could see the leading cryptocurrency return to its all-time high price and perhaps create a new one.

Bitcoin price
The price of BTC in the daily time frame | Source: BTCUSDT chart on TradingView

Featured image created by DALL-E, chart by TradingView

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