Bitcoin ($BTC) Soars to New Record High of $108,000

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As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed the ebb and flow of countless market cycles, from the dot-com boom to the global financial crisis. The current Bitcoin bull run is undeniably one of the most intriguing phenomena I’ve encountered in my career.

Institutional investors, countries, and even U.S. states are increasingly showing interest in Bitcoin ($BTC). Its latest record high of more than $108,000 could be short-lived as purchasing activity might surge before the new president’s inauguration in January.

Ohio, Pennsylvania, and other states, introduce Bitcoin legislation

Alongside institutions and countries, certain U.S. states are examining the feasibility of establishing strategic Bitcoin reserves. The most recent state to contemplate this action is Ohio, which is proposing the creation of a Bitcoin reserve fund as a means to protect against potential devaluation of the U.S. dollar.

In a similar vein to Pennsylvania, another state has taken an interest in cryptocurrency. More specifically, they’ve proposed the Pennsylvania Bitcoin Strategic Reserve Act. This act, if passed, will enable their state treasury to potentially invest as much as 10% of its funds into Bitcoin.

It appears that both Texas and Florida, along with other states, are drafting laws that might take a similar course. Notably, these two states boast large territories and budgets that often outmatch the finances of numerous countries.

Could Europe go in the same direction?

Recently, European Parliament Member Sarah Knafo advocated for the establishment of a Strategic Bitcoin Reserve within the European Union. Her statement “No to CBDC, yes to Bitcoin” signifies a pushback against the potential authoritarian inclinations of a centrally managed digital currency (CBDC), favoring instead the decentralized nature of Bitcoin as an alternative.

As an analyst, I firmly hold the viewpoint that Bitcoin can serve as a safeguard against potential fiscal irresponsibility and excessive government intervention, offering financial autonomy to European citizens.

$BTC correction after a week of uptrend

Following a week-long increase, the Bitcoin price is now experiencing a correction. Having reached the peak of an upward-sloping channel, it has been pushed back. The question now is how low the price may fall. It has already touched the 0.382 Fibonacci level, suggesting it might rebound here.

It’s likely that a significant adjustment could occur, possibly leading the price to reach the lower boundary of the channel, touching either the 0.618 or the 0.786 mark. These points are considered robust support levels.

Instead, it’s more likely that the ascending channel chart pattern will experience a collapse instead of a continuation beyond the pattern. But remember, we’re talking about Bitcoin here, and Bitcoin may be in its last parabolic phase of the bull market. So, conventional predictions might not apply.

When will this Bitcoin bull market end?

Discussions often revolve around the duration of this ongoing bull market. Some believe it may adhere to a typical four-year pattern, a trend Bitcoin has followed historically. If that’s accurate, we might have about a year remaining within this cycle, which would conclude in Q4 of 2025.

While some predict that the bull market may not last as long and could peak in either Q1 or Q2 of 2025, it’s possible that Bitcoin’s price might undergo another adjustment before then. This correction could potentially push the price back to approximately $85,000 or even around $71,000, based on Fibonacci levels.

In simpler terms, there’s a chance we might see another peak (or high point) in Bitcoin price, higher than the previous one during the 2021 bull market. This second peak could touch the rising trendline, which might lead to a rejection and cause Bitcoin to drop significantly, entering a bear market.

As an analyst, I’m expressing my thoughts, which are based on speculation given the current situation. It seems that we might be on the brink of a purchasing competition among nation-states. Under these circumstances, a four-year cycle could plausibly emerge as the most likely timeline.

Regardless of the situation unfolding, and Bitcoin potentially having an unexpected surge, the years leading up to 2025 promise an exhilarating ride ahead.

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2024-12-18 14:04