Bitcoin Price Forecasted to Reach $100,000 Within the Next Six Months; Potential for Subsequent Surge in Selling Activity
Chris Vermeulen, the Chief Market Strategist of The Technical Traders.com, recently discussed the price and trends of Bitcoin in a conversation with David Lin.
According to Chris, despite Bitcoin’s inability to break the $70,000 level, he believes that the cryptocurrency is primed for further gains. He explained that Bitcoin has formed a basing formation on the chart, resembling a cup and handle pattern. This pattern is considered one of the strongest, especially when it is built in a basing formation. As a result, Bitcoin’s price is now surging higher after breaking out of this level.
There are several notable levels to consider, and one of the most accurate methods to forecast Bitcoin’s price momentum is the Fibonacci extension. By applying the Fibonacci extension to the chart pattern, Chris has identified upside targets for Bitcoin’s price movement.
After a pullback and subsequent rally, the next target in this rally is around $80,000, with a potential further upside to $90,000. However, Chris believes that Bitcoin can go even higher, depending on historical trends. He stated, “If we apply the Fibonacci extension, which is the start of this breakout rally and the pullback we saw just a month ago, this projects where Bitcoin could go, and it is dramatically higher. This brings us up to about $87,000 and $106,000.”
Taking a broader perspective using the monthly chart and Fibonacci analysis, Chris pointed out potential targets for Bitcoin’s upward trajectory. While he admitted that he was not a Bitcoin expert, he noted that Bitcoin and gold are seen as alternative currencies. Both assets are currently experiencing upward movement, possibly due to concerns about the stability of the dollar and the stock market. Chris speculated that this trend indicates a looming crisis, prompting investors to seek refuge in alternative assets like Bitcoin and gold.
“There’s a lot going on here. Now, there will be some resistance at $100,000. Typically, on whole numbers like $100,000, there are sellers lurking up there,” he added.
If Bitcoin reaches the aforementioned level, it could trigger a wave of selling, leading to a pullback or consolidation for several months. However, Chris believes that reaching $100,000 is the next milestone for Bitcoin and it could happen within the next four to six months based on the current chart pattern.