- Bitcoin is not yet in “overbought” territory and could reach $ 75,000 before the end of the current bull cycle, Kraken says.
- Depending on historical bitcoin price movements, the first quarter of 2021 could be marked by massive gains for the token.
- Bitcoin is up 62% since the start of the year on Friday as it hovers just below $ 48,000.
- Sign up here for our daily newsletter, 10 things before the opening bell.
Bitcoin could gain much higher before the current bull market ends based on historical price movements, a market report from Kraken Intelligence released on Friday said.
Although bitcoin is rapidly approaching resistance, there are several tens of thousands of dollars still far from entering “overbought” territory, Kraken said. If bitcoin were to exceed $ 75,000 in the next few months, historical price developments suggest that bitcoin would then be near the top of the cycle.
The cryptocurrency retreated from its all-time high above $ 58,000 on February 21, but still ended the month 37% higher. The coin is up 62% year-to-date on Friday as it hovers just below $ 48,000.
Bitcoin now has a similar trend to the first quarter of 2013, the best first quarter on record, according to Kraken. If the trend continues, the first quarter of 2021 “could be a historic district with a relatively disproportionate return”.
“By plotting a logarithmic growth curve that connects the highs (resistance) and lows (support) of BTC’s previous market cycle and making assumptions about the severity of the BTC correction upon reaching a cycle high, one will see that BTC probably has a lot of advantages before entering a bear market, ”the report states.
The report comes as some investors express concern that bitcoin’s rapid acceleration is a clear sign that the cryptocurrency is in a bubble waiting to burst. Michael Burry said the coin was a “speculative bubble that presents more risk than opportunity” in a tweet on Monday that has now been deleted.
Kraken CEO Jesse Powell told Bloomberg on Wednesday that a price target of $ 1 million over the next 10 years was “very reasonable.”