Bitcoin took a bit of a dive recently, dropping to around $92,000 after the Federal Reserve’s rate cut. But it’s bounced back a bit, trading above $97,000. While many hope to see it hit its previous high of $108,135, one analyst is predicting something even bigger.
A Bold Prediction Based on History
Tony “The Bull” Severino, head of research at NewsBTC, thinks Bitcoin could skyrocket to a whopping $178,000! His prediction is based on something called Bollinger Bands – a technical analysis tool that shows market volatility.
Severino noticed that Bitcoin’s price recently touched the upper Bollinger Band on the daily chart. Historically, this has signaled major price increases. For example, a similar touch in late January 2024 led to an 86% rally. If history repeats itself, a similar rally from the current price would put Bitcoin at $178,000.
Obstacles on the Way to $178,000
While $178,000 sounds amazing, there are hurdles to overcome. Bitcoin needs to break through some significant resistance levels around $97,500 and $99,800. According to analyst Ali Martinez, a large number of Bitcoin holders bought in around these prices and might sell to recoup their losses, putting downward pressure on the price.
However, if Bitcoin can power through this resistance, it could potentially reach its previous all-time high and even surpass it. So, while the $178,000 prediction is ambitious, it’s not entirely out of the realm of possibility.
