Bitcoin Price To Hit $125,000 This Year, Supported by Bayesian Analysis
Bitcoins surge has caused nearly $700 million in leveraged positions to be liquidated, with most liquidations affecting long positions.
Bitcoin has reentered the spotlight as analysts forecast six-figure price targets. Veteran trader Peter Brandt predicts that Bitcoin could reach $125,000 by the end of the year.
Using Bayesian probabilitya statistical method that evaluates future outcomes based on historical trendsBrandt argues that Bitcoins current market behavior resembles past patterns that signal strong bullish runs.
Bitcoin Surpasses $80K, Enters Price Discovery Phase
After surpassing the $80,000 mark, Bitcoin is experiencing a new price discovery phase, its first since late 2020. BTCs weekly chart broke key resistance levels, triggering a bullish outlook across short- and long-term metrics.
This milestone has prompted multiple analysts to set ambitious targets. Brandts projection of $125,000 is one of the more optimistic forecasts, though others have set benchmarks ranging from $100,000 to $150,000.
Strong momentum appears sustainable, as the weekly chart displays bullish signals, including a golden cross formation, where the 50-day moving average crosses above the 200-day moving average.
Brandts analysis, grounded in Bayesian probability, suggests that Bitcoins current price movement could follow a similar trajectory to past bull runs. Bayesian probability allows for conditional forecasting by assessing prior occurrences in similar situations.
According to Brandt, BTCs move above its previous all-time high has triggered a mark-up phase, where the price will likely continue climbing. The Bayesian approach uses historical data to set high-probability price ranges, which has led Brandt to estimate that $125,000 by December 31 is achievable if BTC maintains this bullish structure.
Alongside Brandts projection, other analysts like Titan of Crypto forecast even higher targets, noting that Bitcoins bull pennant pattern points to $158,000 as an upper range if the upward trend holds.
Analysts Warn of Short-Term Correction
Despite the bullish outlook, some analysts urge caution, pointing out that Bitcoin could experience a brief consolidation phase. The market saw a 6% rise over the weekend, potentially setting up BTC for a short-term correction around $84,000 to $85,000 before resuming its climb.
Looking ahead, Bitcoins chart patterns reflect conditions similar to those preceding previous price surges. The alignment of multiple bullish indicators, from golden crosses to significant resistance breaches, strengthens Brandts prediction.
While Bitcoins journey toward six figures could face short-term volatility, the robust metrics underpinning this rally have drawn increased interest from retail and institutional investors.
At press time, Bitcoins price is on a strong upward surge, posting gains of over 9.8% in the past 24 hours and nearing a 30% increase for the week. Currently trading above $86,000, BTC has reached a new all-time high at $87,381.
Whats Driving BTCs Price Rally?
One of the main drivers behind the broader crypto rally is Donald Trumps recent election victory, with promises of policies that may positively impact the financial and crypto markets. However, Bitcoins recent surge over the last 48 hours appears closely tied to MicroStrategys latest investment.
The firm acquired an additional $2 billion worth of Bitcoinequivalent to 27,200 BTC at an average price of $74,463. This strategic purchase has already yielded over $300 million in gains, further boosting market sentiment.
Read more: https://zycrypto.com/bitcoin-price-to-hit-125000-this-year-supported-by-bayesian-analysis/
Text source: ZyCrypto
