A cryptocurrency analyst has recently predicted that Bitcoin’s price could surge to a staggering $233,000 by the first quarter of 2025, based on a key technical indicator that BTC’s current consolidation phase could lead to a massive price increase.
In a post shared on the microblogging platform X (formerly known as Twitter), cryptocurrency analyst Bitcoindata21 suggested that there’s a historical correlation between Bitcoin’s Relative Strength Index (RSI) peaks and the cryptocurrency’s price rises.
The Relative Strength Index a technical indicator meant to chart the current and historical strength or weakness of an asset‘s recent price changes.
By comparing current RSI levels to those during previous bull markets, as Cointelegraph first reported, the analyst has concluded that a price target of $233,000 or higher is a realistic possibility in the first quarter of next year.
Just to tie together my previous 2 posts:
The top of the trend channel for monthly RSI is around 88.6 in Q1 2025. If you are expecting it NOT to get hit, then you believe this time is different.
The 2 standard deviation red line (for monthly RSI cumulative mean) is 89.3
So the… pic.twitter.com/QDTDEFaWvt
— bitcoindata21 (@bitcoindata21) October 14, 2024
The price prediction, while ambitious, isn’t entirely without precedent as Bitcoin’s past bull markets have been characterized by rapid and substantial price rises, often as a result of supply shocks in the market after halving events. Bitcoin’s latest halving was seen in April of this yar.
Bitcoin is at the time of writing trading at $65,000 after moving up significantly over the past week. Data from on-chain analytics firm CryptoQuant, as reported, shows that Bitcoin reserves on exchanges recently hit an all-time low of 2.6 million BTC, down from over 3.3 million seen nearly three years ago.
Meanwhile, the Bitcoin network has remained active, with high levels of transaction volume and address usage as long-term holders keep on accumulating, while short-term holders “show sign of selling.”
Lower Bitcoin reserves on exchanges suggest that available supply on the market is dropping, which means that the price of the cryptocurrency could rise if demand remains steady, or if it increases. BTC’s price could have also recently benefitted from the trustee overseeing Mt. Gox’s assets announcing another delay in distributing the remaining funds to creditors, pushing the deadline by one year to October 31, 2025.
Supply on the market may have also dropped as Bitcoin staking protocol Babylon has recently reopened for additional BTC deposits, and drew in about $1.5 billion worth of the flagship cryptocurrency shortly after doing so as investors rushed in to stake their coins in less than an hour and a half.
Featured image via Unsplash.
