Bitcoin achieved its highest daily closing price of $68,245 on March 4, surpassing its previous record of $67,525 on November 8, 2021. The world’s first cryptocurrency has experienced an 18% increase on the weekly chart and a 55% increase on the monthly chart.
This significant price surge has led some analysts to speculate whether Bitcoin’s price will reach $100,000 by the end of the year. While some experts anticipate even higher price levels, others believe that the all-time high price resistance of $69,000 could act as a local top.
A research report by Bitfinex analysts suggests that the introduction of United States spot Bitcoin exchange-traded funds (ETFs) could drive Bitcoin’s price above $100,000 by the end of 2024. This new price-agnostic demand is expected to help the largest cryptocurrency break its previous all-time high.
On March 5, Bitcoin came close to reaching $69,000 but fell $150 short of breaching its all-time high. Historically, Bitcoin’s price tends to consolidate immediately after quadrennial halving events. However, its best performance often occurs in the following year, which could potentially push Bitcoin above the $100,000 mark, according to Vetle Lunde, a senior analyst at K33 Research.
Bitcoin’s recent bullish price action coincides with an announcement by MicroStrategy, the largest corporate Bitcoin holder, stating that it plans to raise $600 million to purchase more BTC. The funds will be issued in the form of senior convertible notes.
Prominent Bitcoin analysts are generally optimistic about the cryptocurrency’s future. PlanB, a pseudonymous quantitative analyst, predicts that the Bitcoin bull market is just beginning and expects 10 more months of “face-melting FOMO.” Willy Woo, a Bitcoin analyst and managing partner at CMCC Crest, believes that the current rally is just a warm-up, and the “full fundamental-driven bull market” is yet to commence.
However, the Crypto Fear and Greed index, which measures market sentiment, has reached a three-year high of 90, indicating “extreme greed” and a higher likelihood of a correction. In the past, when the index surpassed 90, a local top followed shortly after.
Technical analysis from pseudonymous Bitcoin analyst Dave the Wave suggests that Bitcoin’s prices could experience a retracement below $44,000 in 2024. Additionally, Bitcoin’s high funding rate on Binance, the world’s largest crypto exchange, could potentially lead to a correction due to heavy leverage use and cascading liquidations.
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.