In 2009, the pseudonymous Satoshi Nakamoto invented Bitcoin, a currency that changed the finance industry forever, especially after the 2008 financial crisis. Digital Money was redefined by the invention of Bitcoin, which has a total number possible to be mined up to twenty one million. At present, more than 19 million bitcoins have been mined. With prices rising from $0.0008 per coin in 2010, to currently trading at 68,862.90USD. According to analysts, Bitcoin still has a lot more potential and is predicted to reach $150K by 2025, emphasizing its rising importance as a digital asset.
The periodic halving events that happen every four years are like when gold miners reduce their production, creating scarcity. That’s why Bitcoin is often referred to as “digital gold”. Lately, the introduction of new investment options for Bitcoin, such as ETFs (Exchange Traded Funds), futures contracts, and secure custody solutions for institutions, has had an impact on its price. The fact that the SEC has accepted Bitcoin ETFs is a significant milestone in the history of cryptocurrency, demonstrating that Bitcoin is gaining recognition and being used as a legitimate asset class by mainstream investors.
Bridging The Gap
BTC traded around $43,906 in early 2024 during the first week of January. It closed at $42,582.61 on January 31st. Right after January, although prices did not blast upwards, a highly anticipated Bitcoin halving event sent the price into the stratosphere toward $64,000.
Even though the block reward for Bitcoin miners was halved from 6.25 BTC per mined block to 3.125 BTC per mined block, Bitcoin’s popularity did not suffer from this change. The combination of the Bitcoin ETF and the halving did not harm the price of the cryptocurrency because it created a bridge for small investors between crypto and traditional investment. These were not isolated events.
Crypto Analyst Predicts 3-Fold Rise Of Bitcoin
In 2021, there was a huge influx of institutions adopting Bitcoin. One example of this was GBTC, which saw a significant amount of money outflow. The SEC’s decision to reject certain Bitcoin-related products caused brokerages, including GBTC, to become more active. However, by March, the outflow of money from specific funds started to slow down, which brought some stability to the market. During this time, the price of Bitcoin shot up quickly, reaching highs of $69,210 and $70,184. The approval of these funds, along with the approval of the trust, resulted in a new record high for Bitcoin of $73,805.27 on March 14.
Veteran analyst Peter Brandt recently made a bold prediction regarding the future price of Bitcoin with respect to gold, which he called ‘his latest thinking on Bitcoin‘ from his X account. He is convinced that Bitcoin will surge many times in the next 12 to 18 months. Indeed, his chart shows that the amount of gold one needs to buy 1 Bitcoin will continue to increase in the next 12 to 18 months.
According to Brandt, Bitcoin will gain over three times more than gold. The period between the start of each bull market cycle and the date of halving is almost identical to the period between the dates of halving and the peak of the next bull market.
According to the present pattern, the next peak of the bull market cycle should take place in late August or early September 2025. According to Brandt’s analysis, historical bull market highs tend to follow a certain pattern, almost resembling an inverted parabolic curve, which signals that the current bull market cycle could peak at $130,000 to $150,000 for Bitcoin.
Technical Analysis
There is a bullish engulfing candle around $68,500, which indicates strong buying interest. A bullish EMA crossover also happened at $68,100, which also indicates that the upward momentum is likely to continue. The current pivot point is at $68,342, which is further supported by a positive trendline. The market is currently facing key resistance levels of $69,543, $70,550, and $71,494, while it faces support levels of $67,311, $66,650, and $65,932.
The RSI is at 62, which means positive momentum, and a 50-day EMA at $68,045 adds further credibility. With Bitcoin’s current price at $68,987, an ATR of 1469 would be about 2.13% of its price, which could be seen as a less volatile period for Bitcoin. Over the past three months, Bitcoin has been losing its high volatility risk and stabilizing its price.
Given its downward trendline at $69,000, there are fewer chances of any immediate price surge. While this might not indicate great news for many investors in the short run, there are chances Bitcoin might reach a mark of $130,000 to $150,000, as predicted by the analyst, given it can hold itself in the 2.13% price change to volatility. While chances of Bitcoin reaching new record highs are possible, investors should, however, read market conditions, especially in the advent of the U.S. Securities and Exchange Commission’s decision on Ethereum Spot ETF being a security.
Since the spot Ether exchange-traded funds were greenlighted in the United States, around $3 billion worth of Ether has been pulled out from centralized crypto exchanges, with more delistings coming down the pipe. This news would likely be bullish for Bitcoin, which may move towards the $150,000 band sooner in case the SEC declares Ethereum a ‘security’.
