Bitcoin has been on a major bull run in recent weeks, and it has been pulling the entire crypto market up. Over the past week, BTC has gained by over 14%, and at the time of writing, BTC was trading at $24,835, according to data from CoinGecko. Some analysts now anticipate that more gains are coming, speculating a rally to $250,000.
Is Bitcoin headed to $250K?
One Twitter user has excited Bitcoin investors by sharing a chart showing that the current rally could take Bitcoin to $250K. While this looks like a stretch, BTC can make such a rally if it repeats the bull cycle of 2017.
https://twitter.com/StockmoneyL/status/1627289916966072322/photo/1
2017 was one of the best years for Bitcoin. Bitcoin started the year at a little over $200 but later ended the year at a record high of $20,000. This price movement saw BTC pumping by 2000% during the year. If this bull cycle is repeated, the coin could likely end the year at all-time highs of $250,000.
However, this Twitter user is not the only one predicting a major rally for Bitcoin. The author of Rich Dad Poor Dad, Robert Kiyosaki, recently predicted that Bitcoin would touch $500,000 in the next two years. The finance writer said that the possibility of a depression would result in people shifting towards other assets such as gold and Bitcoin.
The gains made by Bitcoin in recent weeks are impressive, given that the effects of FTX’s collapse are still being felt, with Galois Capital being the latest firm to shut down its doors. Moreover, the coin shows resilience when there is uncertainty about the Federal Reserve’s decision on interest rates after the recent inflation data showed that much needed to be done to cool down the economy.
Nevertheless, the main factor that will determine where BTC’s price will be headed this year is inflation data. However, the halving event will determine the BTC price movement in the coming year. BTC usually makes a major price rally in the months leading to the halving event. The next halving event is slated to happen in March next year.
Bitcoin’s price chart
As analysts predict major gains for Bitcoin in the long term, the short-term outlook shows that a slight correction is underway. With a Relative Strength Index (RSI) of 47, it is clear that sellers are taking profits after the 14% weekly gains. Moreover, buyers appear to have lost control of the sellers, and if they do not return, Bitcoin could likely drop below $24K.
Bitcoin is currently facing a crucial and decisive resistance level of $25K. If it follows the trend seen in the past week, BTC could overcome the current short-term price correction and break past $25K before rallying to $30K.
The CEO of Galaxy Digital, Mike Novogratz, predicted that BTC would rally to $30K by the end of the current quarter. While speaking at the Bank of America conference, Novogratz said this price target would be reached by the end of March.
“When I look at the price action, when I look at the excitement of the customers calling, the FOMO building up, it wouldn’t surprise me if we were at $30,000 by the end of the quarter,” Novogratz said.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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