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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.
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.
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.
Featured image created by DALL-E, chart by TradingView