Bitcoin (BTC) had its highest daily close at $68,245 on March 4, beating its previous record close of $67,525 on Nov. 8, 2021. The world’s first cryptocurrency is up over 18% on the weekly and 55% on the monthly chart.
Does this mean that Bitcoin price is on track to reach $100,000 by the end of the year? Some analysts are expecting even higher price levels, while others are anticipating a local top at the all-time high price resistance of $69,000.
ETFs could drive BTC price above $100,000 by end of 2024
The new price-agnostic demand introduced by United States spot Bitcoin exchange-traded funds (ETFs) will help the world’s largest crypto breach its previous all-time high, according to a research report by Bitfinex Analysts, shared with Cointelegraph. Notably:
“Our analysis forecasts a conservative price objective of $100,000-$120,000 to be achieved by Q4 2024, and the cycle peak to be achieved sometime in 2025 in terms of total crypto market capitalization.”
Bitcoin rose 2.85% in the 24 hours to 9:25 am (UTC) to trade at $66,799. Bitcoin’s price was inches away from $69,000 on March 5 but stopped $150 short of breaching thi all-time high and psychological price level.
While Bitcoin price typically consolidates immediately after the quadrennial halving events, its best performance comes the following year, which could help Bitcoin breach above the $100,000 mark, Vetle Lunde, a senior analyst at K33 Research, told Cointelegraph.
“Based purely on data from past performance and the diminishing impact of halving rallies, Bitcoin could see a 130-150% rally in the year following the halving, which would lead to a peak in the range of $125,000 – $150,000 in 2025.”
Bitcoin’s bullish price action comes a day after the largest corporate Bitcoin holder, MicroStrategy, announced that it will raise $600 million as part of its plans to buy more BTC. The funds will be issued in the form of senior convertible notes, according to a March 4 X (formerly Twitter) post by executive chairman Michael Saylor.
Related: US gov’t moved $922 million of seized Bitcoin after BTC price broke $60,000
Most popular Bitcoin analysts are optimistic about Bitcoin in the near term. On March 1, pseudonymous quantitative analyst PlanB predicted that the Bitcoin bull market is only starting with ten months more of “face-melting FOMO” ahead.
Furthermore, Willy Woo, Bitcoin analyst and managing partner at CMCC Crest, said that the current rally is just a warm-up and that the “full fundamental-driven bull market” hasn’t even begun.
Bitcoin price correction coming amid “extreme greed”?
The Fear & Greed index, a multifactorial measure of crypto market sentiment, rose to a three-year high of 90, signaling “extreme greed” and higher chances of a correction. The last time the index was above 90 was in February 2021, followed by a local top in the spring.
Additionally, Bitcoin prices could still see a retracement to below $44,000 during 2024, according to technical analysis from pseudonymous Bitcoin analyst Dave the Wave, who noted in a March 5 X post:
“Though I’m comfortable with an indeterminate future, and where we’re currently at technically and potentially a pivotal point with resistance at previous ATHs, the default option has to be to stick with the continued parabolic move until at least the bold dotted line is broken…”
Bitcoin’s high funding rate also bolsters the possibility of a potential correction, signaling heavy leverage use that could eventually lead to cascading liquidations. Bitcoin’s funding rate on Binance, the world’s largest crypto exchange, has reached a multi-year high of 0.0995%, according to Coinglass data.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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