Bitcoin price has performed well this week, crossing the important milestone of $100,000 and peaking at $104,000.
Bitcoin (BTC) surge occured as data indicated continued investor appetite for the digital currency, even at a six-digit price. Notably, data from SoSoValue shows that spot Bitcoin exchange-traded funds saw a net inflow of over $33 billion.
These funds now hold a record $109 billion in assets after six consecutive days of positive inflows.
Analysts are optimistic that the coin will continue doing well in the next few years. In separate notes, analysts from Standard Chartered and BitWise predicted that the coin will get to $200,000 in 2025. They both cited strong institutional demand amid falling supplies.
Historical data supports the possibility of accelerated growth. For instance, the Dow Jones rose to $10,000 in 2000, then doubled to $20,000 in 2017, and reached $40,000 this year. Similarly, the S&P 500 doubled from 1,000 in mid-2008 to 2,000 in mid-2014 and then took seven years to double again.
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In addition to institutional adoption, Bitcoin price could jump as governments start buying. The US already holds 198,109 Bitcoins, while China, the UK, and Ukraine have 190,000, 61,000, and 46,000 coins, respectively. Other top holders are Bhutan, El Salvador, and Venezuela.
With geopolitical tensions likely to increase during the Trump administration, more countries may consider buying Bitcoin. The U.S. could also convert its holdings into strategic assets under the leadership of newly appointed crypto czar David Sacks.
Bitcoin price technicals point to more gains
Bitcoin price chart | source: crypto.news
Popular crypto analysts forecast BTC reaching $200,000, but the long-term chart suggests potential resistance at $122,000.
The monthly chart shows that Bitcoin has just completed the formation of a cup and handle pattern. The upper side of this cup was at $68,858. It then formed the handle between March 2024 and November.
This cup was about 77% dip. Therefore, if we measure the same distance from its upper side of the cup, it means that the coin will rise to $122,000. This means that it has about 25% upside from the current level to go from the current level.
This outlook aligns with Elliot Wave patterns, suggesting the move to $122,000 would be the third wave, followed by a minor fourth-wave pullback and a final breakout to $200,000.
Therefore, while Bitcoin price will likely hit $200,000, it could face some volatility or a big pullback when it gets to $122,000.
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