Bitcoin’s next peak may fall between $75,000 and $306,000 if the market imitates the same pattern recorded in 2011. This is according to Kraken’s new research which bullishly suggests that the Bitcoin bull run is still ongoing, although there’s an equal chance that Bitcoin could continue blinking red.
According to a logarithmic growth curve which is useful for measuring the previous resistance and support levels, Bitcoin could record a new high of $75,000 says the research.
While bullish for the market, this signals an overbought asset. Although Bitcoin is nearing resistance, the curve suggests that Bitcoin is still far away from reaching overbought territory. Bitcoin’s recent retracement below $50,000 signaled a potential crash to lower lows, precisely because speculations trailed the scenes that Tether’s case with the SEC could close bullish channels for the asset. However, with the new research, analysts’ predictions of a possible up climb above $50,000 may not be very far away.
Should a historical crash follow, Bitcoin could drop to $30,620. And if Bitcoin finally hit the highly anticipated price of $100,000, with an additional $2,000, then $30,620 remains the nearest support for the asset. On the flip side, a massive correction could send Bitcoin to never-before-seen highs of $306,000. From another angle, Bitcoin could make a downward correction to $221,000.
Excerpts from the piece reads:
“if one were to assume that Bitcoin corrects -70% this market cycle, BTC would need to be trading at $102k to fall down the log growth curve’s support (30,620) 385 days from month-end. Meanwhile, a -90 correction implies a price of $306k and an -86% correction, or the average retracement of prior market cycles, implies a price of $221k.”
Meanwhile, analysts are speculating a slow and steady recovery for the asset. Last month, pundits predicted a retest to $44,000. But a possible decline could follow and send Bitcoin to $30,000. This was according to Josh Rager, who added that the preceding market pattern could see Bitcoin surge upwards from there. His tweet read:
“Keeping an eye on the $44ks – tested once but a break below there likely sends price back down to $40k and if price makes way to $40k – you know it’s going to wick in the mid to upper $30ks Could bounce here – but going to take it level by level/day by day.”
BTCUSD Chart By TradingView
At a press time price of $49,000, Bitcoin is headed for a retest at $50,000, and as the analyst predicted, the momentum required to stay afloat cannot be achieved in a day. In the near term, external activities from the traditional market scenes could potentially give Bitcoin a much-needed upward push.
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