- Four consecutive green candles on the monthly chart set Bitcoin up for a 260 percent price rally over the next year.
- As Bitcoin halving event approaches in just a year’s time from now, the number of bullish calls for Bitcoin over $100,000 has grown significantly.
The world’s largest cryptocurrency Bitcoin (BTC) has had a stellar run this year in 2023 with the BTC price shooting all the way up by more than 75 percent since the beginning of the year.
After a series of events in April, Bitcoin ended the last month in a very flattish tone with mild positive gains. After making some early gains on Sunday, April 30, Bitcoin (BTC) lost steam failing in yet another attempt to move past $30,000. As of press time, Bitcoin is trading 2.45 percent down at a price of $28,559 and a market cap of $552 billion.
With four consecutive months of gains, Bitcoin (BTC) sets itself up for even greater gains over the next year. As per the Bloomberg data over the last decade, any four-month winning streak in Bitcoin has been followed up by another 260 percent rally in the coming year. If Bitcoin were to replicate its past performance, its price would easily surge past $100,000 over the next year.
Despite the macro headwinds and the banking crisis this year, Bitcoin (BTC) has delivered a pretty strong performance this year. It has truly shown hedge-like characteristics against the downfalls in the traditional financial and banking sectors.
Now, analysts predict as the Fed softens its monetary policy going ahead, liquidity will return to Bitcoin and crypto. Speaking to Bloomberg, Christopher Forbes, head of CMC Invest Singapore, said:
The biggest thing for crypto is that it’s a lightning rod for liquidity. And as liquidity returns to the market, and it is and we’re seeing that, I think crypto will continue to trade well.
Analysts are bullish on Bitcoin (BTC)
In recent months, the calls for the Bitcoin (BTC) price to shoot past $100,000 have grown in numbers. Top market players like the Standard Chartered Bank and BCA Research have given calls for the Bitcoin (BTC) price to move past $100,000.
“The recent banking-sector crisis has helped to re-establish Bitcoin’s core use case as a decentralized, trustless, and scarce digital asset,” said Geoff Kendrick, head of crypto and EM FX West research at Standard Chartered.
The banking giant is further betting on the upcoming Bitcoin halving event for its bull case scenario. The Bitcoin blockchain will undergo the halving event by mid-2024 thereby cutting mining rewards in half and thus reducing the BTC flow in the market.
Also, history shows that there’s been a strong price rally for Bitcoin before and after the halving. Thus, Standard Chartered expects the BTC price to touch $100,000 levels by the end of 2024.
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On the other hand, BCA Research believes that in the long term, Bitcoin could be partially eating into the market share of Gold as a store of value. Bloomberg Intelligence’s Jamie Douglas Coutts also explained that even if 1% of global bond-market value moved toward Bitcoin, that would take the asset price to $185,000.
On the other hand, the US banking system continues to experience more shock waves. In the latest development, US regulators have seized the First Republic Bank and agreed to sell it to JPMorgan Chase. This is the third major banking collapse in the United States just within a matter of three months.
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