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The price of Bitcoin dropped to around $92,000, on Friday afternoon, December 20 after the US Federal Reserve cuts caused a sharp selloff in the crypto market. However, the first cryptocurrency seems to be recovering well, as it returned above the $97,000 level on the same day.
While investors are hoping to see the price of Bitcoin rebound to $108,135, a prominent crypto analyst has put forward a clear goal for the market leader. Below is the reason behind the new Bitcoin price target.
Can Bitcoin Price Repeat This 86% Rally?
In a new post on the X platform, NewsBTC head of research Tony “Bull” Severino shared an interesting prediction for the price of Bitcoin. According to CMT’s certified crypto analyst, the flagship cryptocurrency looks poised to reach as high as $178,000.
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This bullish prediction is based on Bitcoin price movement in relation to Bollinger Bands. Bollinger Bands is an indicator consisting of three lines; a simple moving average (middle band) and an upper and lower band. This technical analysis tool helps to assess the volatility of financial markets.
According to Severino, the price of BTC during the daily period retested the upper monthly Bollinger Band. From a historical perspective, this action marked the beginning of significant price rallies in the past.
Most recently, a similar retest occurred in late January 2024 and was followed by a price rally of 86% to the previous high of $73,737. Severino noted that if history repeats itself the price of Bitcoin could also see a similar 86% rally from its current price point to reach a new record high of $178,000.
As of this writing, the price of Bitcoin is around $97,265, which represents a 0.8% increase in the last 24 hours. However, the first cryptocurrency is still down 4% on a weekly basis.
Here’s What Must Happen First
Indeed, the 178,000 target may not be all that exciting for Bitcoin’s price, especially given its performance in recent months. However, the latest on-chain data shows that the market leader needs to overcome major resistance around $97,500 and $99,800.
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According to crypto pundit Ali Martinez on X, more than 924,000 addresses bought more than 1.19 million BTC within the aforementioned price bracket. This becomes counterintuitive as buyers within the price range may look to sell their assets to break even after a loss; this puts downward pressure on prices.
However, Martinez noted that if the price of BTC is able to successfully break this level, investors may see the main cryptocurrency return to an all-time high and possibly make a new one.
Featured image created by DALL-E, chart from TradingView
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