Bitcoin Analyst Forecasts 40% Rally Before Cycle Top: Targets of $109k and $132k
Bitcoin is once again making headlines in the cryptocurrency world as analysts forecast a 40% rally for the digital asset before reaching its cycle top. The Fibonacci extension levels are showing targets of $109k and $132k, sparking excitement among investors and traders alike.
One key indicator of this potential rally is the surge in accumulation addresses for Bitcoin. The HODL mentality, or the practice of holding onto assets rather than selling them, has been gaining popularity. At the beginning of 2024, Bitcoin addresses that have never had an outflow and hold a minimum of 10 BTC held 1.5 million coins. However, that number has now increased to 2.9 million, indicating a growing interest in holding onto Bitcoin for the long term.
The Bitcoin Rainbow Chart, which provides ultra-optimistic forecasts for the current cycle, is targeting $288k or higher. However, historical trends suggest that a cycle top could be closer to $100k this time around.
Crypto analyst CryptoBullet recently pointed out that the weekly MACD for Bitcoin has formed a bullish crossover for the first time since October 2023. This crossover preceded a rally of 172% within five months back in 2023. While some are hopeful for similar gains this time around, CryptoBullet believes that a more modest 40% rally is a more reasonable target.
Looking back at previous bull runs, the weekly MACD bullish crossovers have resulted in significant returns for Bitcoin. In 2017-18, the return was 617%, in 2020 it was 468%, and in 2023 it was 172%. However, the 2023 rally occurred before the halving event, leading to speculation about whether similar gains can be expected this time.
As investors eagerly await the next leg higher for Bitcoin, the 40% price extension target set by CryptoBullet seems to be a reasonable expectation. This target also aligns well with the Fibonacci extension levels plotted on the weekly chart, further adding to the bullish sentiment surrounding Bitcoin.
It is important to note that the information presented does not constitute financial advice and is solely the opinion of the writer. As Bitcoin continues on its upward trajectory, investors will be keeping a close eye on whether the digital asset can reach its projected targets of $109k and $132k.
