AcryptocurrencyanalysthasrecentlypredictedthatBitcoin’spricecouldsurgetoastaggering$233,000bythefirstquarterof2025,basedonakeytechnicalindicatorthatBTC’scurrentconsolidationphasecouldleadtoamassivepriceincrease.
InapostsharedonthemicrobloggingplatformX(formerlyknownasTwitter),cryptocurrencyanalystBitcoindata21suggestedthatthere’sahistoricalcorrelationbetweenBitcoin’sRelativeStrengthIndex(RSI)peaksandthecryptocurrency’spricerises.
TheRelativeStrengthIndexatechnicalindicatormeanttochartthecurrentandhistoricalstrengthorweaknessofanasset‘srecentpricechanges.
BycomparingcurrentRSIlevelstothoseduringpreviousbullmarkets,asCointelegraphfirstreported,theanalysthasconcludedthatapricetargetof$233,000orhigherisarealisticpossibilityinthefirstquarterofnextyear.
Justtotietogethermyprevious2posts:
ThetopofthetrendchannelformonthlyRSIisaround88.6inQ12025.IfyouareexpectingitNOTtogethit,thenyoubelievethistimeisdifferent.
The2standarddeviationredline(formonthlyRSIcumulativemean)is89.3
Sothe…https://t.co/NyOJPLDdmNpic.twitter.com/QDTDEFaWvt
—bitcoindata21(@bitcoindata21)October14,2024
Thepriceprediction,whileambitious,isn’tentirelywithoutprecedentasBitcoin’spastbullmarketshavebeencharacterizedbyrapidandsubstantialpricerises,oftenasaresultofsupplyshocksinthemarketafterhalvingevents.Bitcoin’slatesthalvingwasseeninAprilofthisyar.
Bitcoinisatthetimeofwritingtradingat$65,000aftermovingupsignificantlyoverthepastweek.Datafromon-chainanalyticsfirmCryptoQuant,asreported,showsthatBitcoinreservesonexchangesrecentlyhitanall-timelowof2.6millionBTC,downfromover3.3millionseennearlythreeyearsago.
Meanwhile,theBitcoinnetworkhasremainedactive,withhighlevelsoftransactionvolumeandaddressusageaslong-termholderskeeponaccumulating,whileshort-termholders“showsignofselling.”
LowerBitcoinreservesonexchangessuggestthatavailablesupplyonthemarketisdropping,whichmeansthatthepriceofthecryptocurrencycouldriseifdemandremainssteady,orifitincreases.BTC’spricecouldhavealsorecentlybenefittedfromthetrusteeoverseeingMt.Gox’sassetsannouncinganotherdelayindistributingtheremainingfundstocreditors,pushingthedeadlinebyoneyeartoOctober31,2025.
SupplyonthemarketmayhavealsodroppedasBitcoinstakingprotocolBabylonhasrecentlyreopenedforadditionalBTCdeposits,anddrewinabout$1.5billionworthoftheflagshipcryptocurrencyshortlyafterdoingsoasinvestorsrushedintostaketheircoinsinlessthananhourandahalf.
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