Bitcoin's price trajectory is pointing upwards. A famous crypto analyst has made a bold prediction, claiming Bitcoin could reach $400,000. This isn't going to happen tomorrow, of course, but current numbers support the bright outlook.
This forecast is based on historical trends.
It would require a sixfold increase from current levels. At this price, Bitcoin's market cap would exceed $7 trillion.
Ali Martinez, a crypto analyst, shared his insights on social media. He noted the market sentiment has shifted to "Greed", following Bitcoin's recent surge to $64,750.
Martinez's prediction relies on the Bitcoin power law.
This mathematical model relates Bitcoin's price to time. It suggests Bitcoin will hit $100,000 between 2021 and 2028. The model also predicts a $1 million valuation between 2018 and 2037.
The analyst presented a historical price chart dating back to 2011, and this chart projects that the $400,000 peak could occur in 2025. Martinez even identified key price levels: $392,532 as resistance, $37,146 as support, and $104,693 as the linear regression fit.
Not all crypto enthusiasts agree with this prediction. Some doubt such a dramatic surge, while others suggest a more modest target between $160,000 and $200,000.
Bitcoin's recent performance has been strong. It rose above $64,000 this week, marking a 2.88% increase, and this upward momentum has caught attention.
Another analyst, Jelle, believes Bitcoin is close to leaving its bearish trend. He notes the cryptocurrency has locked in two higher lows and is now approaching a higher high as well.
Jelle identifies $65,000 as a key resistance level. Breaking this could lead to new highs, he suggests.