Bitcoin achieved a new milestone on March 4th, closing at its highest price ever of $68,245, surpassing its previous record of $67,525 set on November 8, 2021. The world’s first cryptocurrency has experienced significant gains, with an increase of over 18% on a weekly basis and 55% on a monthly basis.
The question arises: is Bitcoin on track to reach $100,000 by the end of this year? Some analysts believe that the price could go even higher, while others anticipate a potential resistance at the all-time high price of $69,000.
According to a research report by Bitfinex analysts, the introduction of Bitcoin exchange-traded funds (ETFs) in the United States could drive the price of BTC above $100,000 by the end of 2024. This new demand, which is not tied to a specific price, is expected to help Bitcoin break its previous all-time high.
On March 5th, Bitcoin came close to breaching the $69,000 mark, falling just $150 short of its all-time high and psychological price level. However, history has shown that Bitcoin’s best performance usually occurs in the year after its quadrennial halving events. This has led Vetle Lunde, a senior analyst at K33 Research, to believe that Bitcoin could surpass the $100,000 mark.
The recent bullish price action of Bitcoin coincided with an announcement by MicroStrategy, the largest corporate holder of Bitcoin, stating their intention to raise $600 million to purchase more BTC. This news further contributed to the positive sentiment surrounding Bitcoin.
Popular Bitcoin analysts also remain optimistic about the cryptocurrency’s future. PlanB, a pseudonymous quantitative analyst, predicts that the Bitcoin bull market is just beginning and expects 10 more months of “face-melting FOMO” ahead. Willy Woo, a Bitcoin analyst and managing partner at CMCC Crest, believes that the current rally is only a warm-up and that the “full fundamental-driven bull market” is yet to come.
However, there are indications that a price correction may be on the horizon. The Crypto Fear and Greed index, a measure of market sentiment, has reached a three-year high of 90, indicating “extreme greed” and a higher likelihood of a correction. Past instances of the index being above 90 have been followed by local tops in the market.
Technical analysis from pseudonymous Bitcoin analyst Dave the Wave suggests that Bitcoin prices could retrace to below $44,000 by 2024. Additionally, the high funding rate of Bitcoin, indicating heavy leverage use, raises the possibility of potential liquidations.
It is important to note that this article does not provide investment advice or recommendations. Investing in Bitcoin involves risks, and readers should conduct their own research before making any decisions.