Bitcoin achieved its highest daily close on March 4, reaching $68,245 and surpassing its previous record of $67,525 on November 8, 2021. The cryptocurrency has seen an increase of over 18% on a weekly basis and 55% on a monthly chart. This significant growth has led to speculation about whether Bitcoin’s price will reach $100,000 by the end of the year, with some analysts predicting even higher levels and others suggesting a potential resistance at the all-time high price of $69,000.
A research report by Bitfinex analysts suggests that the introduction of United States spot Bitcoin exchange-traded funds (ETFs) could drive the price of Bitcoin above $100,000 by the end of 2024. These ETFs are expected to generate a new demand for Bitcoin, ultimately propelling it to surpass its previous all-time high. The report highlights the potential impact of this development on Bitcoin’s price.
On March 5, Bitcoin came close to reaching $69,000 but fell $150 short of breaking its all-time high and psychological price level. While Bitcoin’s price typically consolidates after halving events, it often performs exceptionally well in the following year. This pattern could contribute to Bitcoin surpassing the $100,000 mark, according to Vetle Lunde, a senior analyst at K33 Research.
The recent bullish price action of Bitcoin coincides with the announcement from MicroStrategy, the largest corporate holder of Bitcoin, that it plans to raise $600 million to purchase more BTC. This news further boosts confidence in Bitcoin’s future prospects.
Prominent Bitcoin analysts are generally optimistic about the cryptocurrency’s outlook in the near term. PlanB, a pseudonymous quantitative analyst, predicts that the Bitcoin bull market is just beginning and expects 10 more months of significant growth. Willy Woo, a Bitcoin analyst and managing partner at CMCC Crest, believes that the current rally is just a warm-up and that the “full fundamental-driven bull market” has yet to commence.
However, there are concerns about a potential correction in Bitcoin’s price. The Crypto Fear and Greed index, which measures market sentiment, recently reached a three-year high of 90, indicating “extreme greed” and a higher risk of a correction. The last time the index was above 90 was in February 2021, which was followed by a local top in the market.
Technical analysis from pseudonymous Bitcoin analyst Dave the Wave suggests that Bitcoin prices could experience a retracement to below $44,000 in 2024. This analysis raises the possibility of a correction in the market.
Furthermore, Bitcoin’s high funding rate on Binance, the world’s largest crypto exchange, adds to the concerns of a potential correction. The funding rate, which indicates the level of leverage being used, has reached a multi-year high of 0.0995%.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and exercise caution when making investment decisions.