Recently, a bitcoin (BTC) technical analysis that was prepared by CitiFX for its institutional customers states that the crypto may surge to a high of $318,000 by December 2021. However farfetched it may seem, it might represent the ‘weakest’ major rally so far, at a 102 times surge from low to high.
The exact figure is of minimal value over this long time frame as highlighted on November 14 by Twitter commentator Alex. Nonetheless, the analysis predicts that the BTC price might continue to go up and by a lot.
Tom Fitzpatrick, described bitcoin as 21st-century gold. He first looked at the long-term trend of BTC price, characterized as it has been by many “unthinkable rallies followed by painful corrections.”
But, the three major bullish periods of bitcoin so far have been increasing significantly in length. At first, there was a 10-month run from 2010 to 2011 which was then followed by a two-year run from 2011 to 2013; and finally, a three-year run that covered 2015-2017.
Fitzpatrick said that the period of correction after the last two bull runs has remained quite stable at almost 12 months. That, according to analysis, puts the crypto market right in the middle of a bull run that started in early 2019 and might run for four years up to late 2022.
The Prediction
It could be said that such a long bull run might lead to higher price levels. Charting the seemingly well-defined channel in the last seven years offers Fitzpatrick his prediction of a $318K BTC price in December 2021.
While acknowledging that this figure appears highly improbable, he explained:
“This would only be a low to high rally of 102 times (the weakest rally so far in percentage terms) at a point where the arguments in favor of Bitcoin could well be at their most persuasive ever.”
These postulations include a change in the US Federal Reserve’s monetary policy, which happened when the pandemic hit. That was characterized by a widespread and sustained increase in new fiat money production, with minimal intention to limit this after the economy and employment improve again.
