Bitcoin, the popular cryptocurrency, is currently undergoing a detailed technical analysis that has revealed potential market risks and psychological levels. An analyst predicts that the price may reach $80,000 or $90,000 in the short term, while other experts believe it could hit $150,000 by 2025.
Bitcoin has recently experienced a strong rebound, rising from a downward trend below $60,000 to $66,000 at present. This rise has compensated for the previous decline and has seen a 5% increase in the last seven days and a 66% increase in the last 90 days.
Analysts are optimistic about further bullish movement for Bitcoin, as key resistance levels have been broken. This positive outlook is supported by ETF inflows and current technical indicators. In fact, the spot Bitcoin ETF recently recorded net inflows of $62 million, and the BlackRock Bitcoin ETF IBIT has seen 70 consecutive days of inflows, totaling $12.38 billion. These figures indicate a promising future for Bitcoin.
Analyst Miles, who bases his predictions on technical analysis, believes that Bitcoin’s ability to hold the support level at $59,000 is crucial. He compares the current price of $60,000 to when Bitcoin was trading at $20,000 in 2023, noting that the asset made a swift move up the price curve. If this pattern continues, Bitcoin could reach astounding levels with the help of the aforementioned factors and the impact of the halving event.
Miles expects a greater rally towards the end of the year, particularly in Q3 and Q4, while Q2 is likely to be an accumulation period. He also identifies three key ranges that are important for market growth, with $66,000 as a warning point for potential market risks and $70,000 as a psychological level. The pivotal levels to watch closely are $66,000, $60,000, and $71,000 to $72,000. Miles’ analysis suggests that a breakout above $65,000 could lead to further resistance levels at $68,000 to $69,000 and $73,000 to $74,000. Other crypto analysts, including Mark Palmer from the Benchmark Company, also share this bullish projection and predict $150,000 for Bitcoin by 2025.
However, Markus Thielen, co-founder of 10x Research, holds a different view. He believes that there are no catalysts that could drive the Bitcoin price up again, as the previous rally was fueled by the impact of spot Bitcoin ETFs. In recent weeks, there have been minimal new inflows, indicating a decrease in investor interest since the launch of these ETFs in January. Thielen suggests that the Bitcoin rally may have been based on incorrect expectations and that the ETF flows ceased around March 12, coinciding with the release of the consumer price index and producer price index.
In conclusion, Bitcoin is currently experiencing positive momentum and there are optimistic predictions for its future. However, there are differing opinions on the factors that will drive its price, with some analysts foreseeing significant growth while others remain skeptical.