Bitcoin price action could be risky and undergo a major corrective phase. However, even though $60,000 looks slippery for optimistic bulls, some analysts are optimistic that the coin is poised for a strong upside.
Based on past price action, analysts argue that the coin will surpass $73,800 and record new all-time highs closer to or above $100,000 in this projected expansion.
Historical Price Action Places BTC Above $90,000 in Coming Months
An analyst, posting on the X platform, Free a bold prediction based on price action in late 2022. Then, Bitcoin crashed dramatically to $15,500 before rebounding strongly throughout 2023 and into the first quarter of 2024.
Therefore, if Bitcoin follows this formation, the coin will rise to $90,000 and even reach $100,000. Although the timing of this potential increase remains uncertain, another Y platform analyst made a specific prediction.
In an article on This resilience will form the basis of a breakthrough that will allow Bitcoin to climb to $95,000 by August 2024. The timing of this potential peak is because, the analyst explains, price action is fractal and therefore tends to rhyme.
Further reinforcing this bullish outlook, another analyst note that after prices fell to $56,500 this week, it retested a key support trendline.
Since this trendline holds, the analyst predicts that “it’s only a matter of time” before prices rise. However, prices will turn green if there is a close above the current all-time high of $73,800.
Inflation Remains High and US M2 Supply Increases
With the approval of Bitcoin Spot Exchange Traded Funds (AND F), Bitcoin is now closely linked to global markets. As a result, key events in traditional finance will likely impact cryptocurrency prices and sentiment. Inflation is a key indicator that investors and analysts watch.
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Inflation has been above the 2% benchmark in the United States, a hurdle preventing the Federal Reserve from cutting rates further.
However, even if inflation declines – from the 2021 to 2024 cycle – the M2 money supply has been rising, according to FRED Economic data. The last time it rose, it sparked a bull run that forced the coin to reach new all-time highs of around $70,000.
Featured image from Canva, chart from TradingView
