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Bitcoin (BTC), the leading cryptocurrency by market capitalization, reached a new all-time high of more than $70,000 on Friday, capping a seven-week rally of more than 70% and exceeding its previous milestone of $69,000 established in November 2021.
The breakthrough has triggered a bullish outlook from several analysts, who expect Bitcoin to continue its upward trajectory and reach even higher levels shortly.
Tuur Demeester, a long-time Bitcoin analyst, believes that the cryptocurrency is poised for an epic bull market, citing lower supply and aggressive dip buying.
I think we're gearing up for an epic bull market in bitcoin. Just like in the most aggressive cycles in the past (2012 & 2015), we are seeing very minimal price drawdowns. In other words, supply is low and dips are getting bought aggressively. pic.twitter.com/YfOoSF5NqX
— Tuur Demeester (@TuurDemeester) March 8, 2024
The Bitcoin analyst draws a similarity to the most aggressive cycles in the past (2012 and 2015), saying that the Bitcoin market is seeing very minimal price drawdowns. In other words, supply is low, and dips are being eagerly bought.
Bitcoin reached a high of $70,199 for the first time on March 8 before swiftly falling. At the time of writing, BTC was up 1.23% in the previous 24 hours to $68,490.
Bitcoin to $100,000?
Tuur Demeester recalls a scenario from early 2017 when Bitcoin reached $1,200 and some could not believe it could trade at multiples of thousands afterward. Many took large profits only to regret it later, and he predicts the same thing once Bitcoin surpasses $100,000.
Bloomberg reported that Bitcoin-to-$100,000 projections are seemingly becoming more realistic in the options market. This is because call options with strike prices of $80,000 and $100,000 have increased dramatically.
The latest shift in positioning increases the likelihood of a more sustained rally. On the other hand, lower volatility and leverage in the options and futures markets indicate that Bitcoin's price rise to $70,000 was driven primarily by spot market demand. Retail investors typically buy tokens in the cash market rather than employing derivatives to increase leverage.
According to Ali, a crypto analyst, anytime Bitcoin has surpassed its prior all-time highs, the market has often taken 8 to 11 months to reach a market top. With BTC currently at record highs, historical patterns indicate that the next BTC market peak could occur between November 2024 and February 2025, Ali added.