Bitcoin Targets $120,000 If $90,000 Support Holds

Bitcoin, the world's most prominent cryptocurrency, has been a subject of intense speculation and analysis, with some analysts predicting significant price movements in the near future. According to a recent analysis, for Bitcoin to reach $120,000, several key factors must align. The analyst emphasizes that Bitcoin must first hold support at $90,000 to achieve the $120,000 target. This support level is crucial as it indicates a stable foundation from which the cryptocurrency can launch its next bullish phase.

This week, Blockstream CEO Adam Back remarked that "Bitcoin’s price was strangely low and could surge to $500,000 or even as high as $1 million per coin this four-year cycle." In a recent X post, Ali, a crypto analyst, indicated that the next Bitcoin market top could reach $120,000, as long as the $90,000 support level holds. A $120,000 price point indicates a 16% increase over current levels, with Ali hinting at the $90,000 level as a key technical level that could determine whether BTC surges to new highs or stalls.

Bitcoin soared to a new local high of $105,787 on May 12, aided by significant accumulation evident in on-chain volumes. Since the $75,000 price bottom on April 9, Bitcoin has had a strong spot-driven rally, with substantial sideways accumulation bouts between each move higher. Profit taking is happening as expected, but Bitcoin has fluctuated between $100,703 and $105,787 since May 9.

As the market waits to see where Bitcoin goes next, according to Ali, the lead asset must hold support at $90,000 for the $120,000 target to be achievable. Glassnode reported a key accumulation zone emerging between $93,000 and $95,000, which aligns closely with the short-term holder cost basis over the last 30 days. As a result, this zone is likely to serve as a strong support level in the case of a short-term market decline, indicating a demand zone where investors may see value once more.

The analyst's forecast is based on the premise that tighter capital controls globally will drive investors towards borderless assets like Bitcoin. This shift is expected to be fueled by the devaluation of traditional assets, such as US Treasurys, as governments continue to accumulate debt. The analyst points out that the next US presidential election in 2028 could play a pivotal role in Bitcoin's trajectory. A pro-crypto administration could significantly boost Bitcoin's status, while a more restrictive regulatory environment could hinder its growth. Historical examples, such as the Trump administration's relatively friendly stance towards cryptocurrencies, suggest that political support can have a substantial impact on market sentiment.

Regulatory conflicts in various regions also present both challenges and opportunities for Bitcoin. In Europe, authorities are increasingly keen to tighten their grip on crypto use, which could push more people towards digital coins. Conversely, China has avoided banning private Bitcoin ownership, recognizing that such a move would likely fuel underground markets. This regulatory landscape adds complexity to Bitcoin's path towards $120,000, as it navigates through varying levels of acceptance and restriction.

The analyst's forecast is not an isolated prediction. Other prominent figures in the financial world have also made bold calls about Bitcoin's future. For instance, former BitMEX boss Arthur Hayes has predicted that Bitcoin could reach $1 million by 2028, driven by significant shifts in money flows and bond values. Michael Saylor, the CEO of Strategy, has even more ambitious targets, envisioning Bitcoin climbing to a $10 trillion market value, which would translate to approximately $500,000 per coin. These forecasts highlight the growing optimism among some analysts about Bitcoin's long-term potential.

However, achieving these lofty targets will require a flood of new buyers, including big institutions and regular savers. Any serious regulatory crackdown or a sudden rise in bond yields could derail these plans. Nevertheless, if global money continues to seek shelter in safe-haven assets and fiat currencies weaken, the analyst's upside scenario could materialize faster than many expect. The path to $120,000 for Bitcoin is fraught with challenges, but the potential rewards are substantial, making it a closely watched development in the cryptocurrency market.