Bitcoin exchange rate at the time of writing it is very close to $100,000, so it’s no wonder that traders and analysts have set ambitious price targets. With the entire crypto market booming, BTC’s price performance can be compared to the significant rise at the end of 2020, which has sparked speculation of a similar cycle. Ali Martinez is a popular cryptoanalyst recently drew a clear parallel between BTC’s current price and the December 2020 rally. Highlighting the near-identical alignment of Bitcoin’s price trajectory and RSI levels, Martinez also outlined what he thinks is next for BTC.
According to his prediction, BTC could rise to $108,000, then pull back to $99,000 and eventually rise to $135,000. The comparison to the year 2020 emphasizes the cyclical nature of Bitcoin’s market behavior, confirming the possibility of history repeating itself.
Arguments why 2020 and 2024 could be similar for Bitcoin
The current Bitcoin price movement has mirrored the December 2020 spike, with both periods consistently showing higher highs and stable RSI levels that reflect increasing bullish momentum. 2In late 020, Bitcoin rose from $20,000 to over $40,000 in a matter of weeks, driven by institutional acceptance and increased public interest. Likewise, Bitcoin’s current surge past $98,000 is due to renewed interest from institutional investors and macroeconomic uncertainty. The similarity of the course pointed to the possibility of a multi-round rise, during which consolidation phases will probably appear. However, in today’s market conditions, there is greater volatility and a more diverse cryptoecosystem, which makes the parallel not entirely clear.
The number of BTC daily active addresses exceeded 476 thousand, which indicates the continuous growth of the network. At the same time, the community activity level peaked at 388,000, which reflects a strong commitment to the market. These metrics confirm Martinez’s prediction, as growing acceptance and community activity are consistent with historical patterns of sustained price dynamics. The increase in stock outflows signaled strong accumulation as investors pulled their bitcoins out of exchanges. This reduces the available supply, which is historically a bull market indicator.
Other indicators worthy of attention
Parallel to the above, the MVRV ratio approaching 2.6 reflected the growing unrealized profit, but remains below the euphoric peak levels experienced in previous cycles, which hints at the possibility of further growth. MVRV is the Market Value to Realized Value ratio, which compares the market value of Bitcoin to its realized value.
This reduced selling pressure combined with increased demand can create a supply shock. Such dynamics, previously observed in late 2020, catalyzed rapid price jumps. Confirming the reality of Martinez’s $135,000 goal. While Martinez’s forecast is compelling, investors should consider several risks. Bitcoin’s increased volatility and unpredictable macroeconomic factors could disrupt expectations. The MVRV ratio approaching the overbought area also raises the risk of sharp corrections. As a result, market sentiment can suddenly change, intensifying downward pressure. Either way, these are only guesses, and all investment decisions should be made with due care.
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<p>The post Analysts predict a price of $135,000 for bitcoin first appeared on CoinBuzzFeed.</p>
