Bitcoin price action might be dicey, undergoing a major corrective phase. However, even as $60,000 looks slippery for upbeat bulls, some analysts are optimistic that the coin is ready for a strong leg up.
Going by past price action, analysts maintain that the coin will surge above $73,800 and register fresh all-time highs closer to or higher than $100,000 in this projected expansion.
Historical Price Action Places BTC Above $90,000 In Coming Months
One analyst, posting on platform X, offered a bold prediction based on price action from late 2022. Then, Bitcoin spectacularly collapsed to as low as $15,500 before bouncing back sharply throughout 2023 and Q1 2024.
Therefore, if Bitcoin follows this formation, the coin will soar to $90,000 and even reach $100,000. While the timeframe for this potential surge remains unclear, another analyst on platform Y chimed in with a specific prediction.
In a post on X, the analyst said it is imperative that Bitcoin trades above $60,000 so that the uptrend momentum doesn’t fizzle. This resilience will form the base of a leg up that will see Bitcoin roar to as high as $95,000 by August 2024. The timing of this potential peak is because, the analyst explains, price action is fractal and thus tends to rhyme.
Further bolstering this bullish outlook, another analyst noted that after prices sunk to as low as $56,500 this week, it retested a key support trend line.
Since this trend line is held, the analyst predicts that “it is only a matter of time” before prices shoot higher. However, prices will flip green if there is a close above the current all-time high of $73,800.
Inflation Remains High And M2 Supply In The United States Growing
With the approval of spot Bitcoin exchange-traded funds (ETFs), Bitcoin is now interwoven with global markets. Accordingly, key events in traditional finance will likely impact crypto prices and sentiment. One key metric that investors and analysts have been monitoring is inflation.
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Inflation has been higher than the benchmark 2% in the United States, an obstacle preventing the Federal Reserve from slashing rates further.
However, even as inflation drops—from the 2021 to 2024 cycle—the M2 money supply has been rising, according to FRED Economic data. The last time it grew, it triggered a bull run that forced the coin to fresh all-time highs of around $70,000.
Feature image from Canva, chart from TradingView
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