As unlikely as it may seem, it would be the „weakest rally so far in percentage terms“.
According to a technical analysis conducted by CitiFX for its institutional clients, Bitcoin (BTC) could reach a maximum of $318,000 by December 2021.
As trader Alex pointed out on Twitter, it is impossible to identify the exact figures over such a long period of time. However, the study shows that according to experts „Bitcoin’s price will continue to rise, and by a lot“.
Tom Fitzpatrick, the analyst who conducted the study, called Bitcoin „the gold of the 21st century“. Fitzpatrick observed the long-term trend in cryptocurrency, saying that it is characterized by „incredible increases followed by painful corrections.
That said, the analyst noted that the duration of Bitcoin’s bullish periods continues to increase.
Initially there was a 10-month bull run between 2010 and 2011, followed by a two-year run between 2011 and 2013. Finally, we saw the famous bullish market in 2015-2017.
On the contrary, the correction period has always remained stable at around 12 months. In other words, we are currently in the middle of a bull run that started in 2019 and could extend until the end of 2022.
According to Fitzpatrick, such an extended bull run could lead to significantly higher levels: tracing „what seems to be a well-defined channel“ over the past seven years, the analyst has predicted that the price of Bitcoin will reach $318,000 by 2021.
While admitting that this figure may seem highly unlikely, he points out that it would be „a low to high rally of 102 times (the weakest rally so far in percentage terms), although at this moment the arguments in favor of Bitcoin are more convincing than ever“.
The arguments cited by the analyst include the recently introduced monetary policies of the US Federal Reserve, which during the crisis caused by COVID started printing huge amounts of money.