Bitcoin’s (BTC) recent surge in value, nearing $35,000, is causing a widespread crypto market surge. This article explores the potential for BTC to surpass two major resistance levels and reach $125,000, analyzing technical analysis, resistance levels and bullish scenarios on its price potential.
The Bull Market Initiated in June 2021
According to Matrixport, a digital asset trading firm established by Wu Jihan, co-founder of Bitmain, the current bull market for Bitcoin actually initiated in June 2021. This was when BTC achieved a fresh one-year high. Historically, this signal has consistently marked the start of significant gains, with an average return of more than 310%. Drawing upon this signal, Matrixport has projected that BTC could potentially reach $125,000 by December 2024, more than six months after the halving.
October: A Perfect Entry Time?
Matrixport previously predicted that October would be a strong month for Bitcoin, and so far, their prediction has proven to be fairly accurate. Since the beginning of the month, BTC has seen an increase of more than 25%, trading near $27,000 and reaching a press time price of around $34,000. On October 24, Bitcoin experienced a momentary surge, reaching $35,000, its highest level in 17 months. However, Matrixport’s target suggests that BTC could hit $45,000 by year-end, representing a nearly 33% rise from the current level.
Bitcoin The Next Target: $63,000
Looking further ahead, Matrixport’s projection places the next target for Bitcoin at $63,000, expected to be reached around mid-2024. This would pave the way for the ultimate goal of $125,000. It is important to note that these projections are based on historical data and trends, and the actual price movement of BTC may deviate from these predictions.
Bitcoin Institutional Adoption Fuels the Bull Market
Matrixport highlights that the current Bitcoin bull market seems to be largely driven by expectations of institutional adoption. Bitcoin’s characteristics, which were traditionally associated with assets like gold and other safe-haven investments such as Treasury bonds, have led institutions to consider BTC for diversifying their asset allocation. It is not a coincidence that Bitcoin is surging at a time when the United States debt-to-GDP ratio is reaching unsustainable levels.
Technical Analysis: Breaking Resistance Levels
When it comes to analyzing Bitcoin’s potential to break resistance levels and reach $125,000, technical analysis plays a crucial role. Traders and analysts examine historical price patterns, support and resistance levels, and various indicators to make predictions about future price movements.
Technical analysis involves identifying support and resistance levels, which are price points where buying is expected to be strong enough to prevent further price declines. In BTC, breaking through two major resistance levels is crucial for reaching $125,000, as these levels act as psychological barriers for traders and investors.
Moving averages, such as the 50-day and 200-day MA, are used to smooth out price fluctuations and provide a clearer picture of the overall trend. Crossing above the 50-day MA or 200-day MA signals a bullish or stronger bullish signal.
Fibonacci retracement levels, based on the Fibonacci sequence, are used to identify potential support and resistance levels, suggesting that breaking through these levels would be a positive sign for Bitcoin’s upward trajectory.
Conclusion
Bitcoin’s recent surge has sparked speculation about breaking resistance and reaching $125,000. Technical analysis and expert opinions suggest further gains, but caution is advised due to the volatility of the cryptocurrency market.
