Quickly understand the history and background of various well-known coins

Bitcoin's Path to $123K: Four Conditions Must Align

Coin WorldFriday, Jan 31, 2025 6:20 am ET

1min read

Bitcoin Price Could Reach $123K if Four Conditions Are Met

Bitcoin price needs to overcome four key hurdles to reach a new all-time high of $123K, according to recent analysis. These conditions include breaking through the $105K resistance level, a divergence between retail and institutional investors, a reversal in whale transaction activity, and a historical average monthly return for February.

Historical returns suggest that February is a strong month for Bitcoin, with an average return of 15.66%. This, combined with the other three conditions, could set the stage for a new all-time high at $123K.

Key levels to watch as Bitcoin price drops include $101.5K, $100K, $98.2K, and $96.8K. Overcoming the $105K resistance level will allow Bitcoin price to revisit the current ATH of $110K and potentially set a new one at $123K.

Analyst Kevin Svenson believes that Bitcoin is approaching the "really exciting part" of its market cycle, with the potential for a 35% upside from current prices. He predicts that Bitcoin could reach targets of $124K, $134K, and $142K before the current parabolic trend ends.

The upcoming Bitcoin halving event in April 2025 is also expected to drive the price higher, as historical data shows that Bitcoin typically experiences a parabolic rally within six to twelve months following a halving event.

Institutional interest and reduced sell-side pressure are also contributing factors to Bitcoin's potential for future growth. As the market matures, indicators suggest a potential euphoria phase on the horizon, driven by institutional interest and diminished sell-side pressure.

Bitcoin's market structure closely resembles the previous bull run, suggesting an exciting transition phase for investors. The diminishing rate of price appreciation with each cycle, relatively shallow drawdowns, and a hike in Bitcoin's Realized Cap all point to a maturing market with potential for future expansion.

As Bitcoin continues to evolve, investors should keep a close eye on these indicators to navigate the evolving landscape and capitalize on potential opportunities for growth and expansion.

Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.