After Bitcoin failed to hit the "$100,000 mark" last week, it is currently hovering around $96,000. Analysts from ARK Invest, run by "Female Stock God" Cathie Wood, said that this wave of correction is nothing more than a "big rise" "Building momentum ahead of time," Bitcoin is preparing to fight for new highs.
ARK Invest researcher David Puell stated in an interview with (CoinDesk):
We estimate that Bitcoin is expected to reach the price range of "US$104,000 to US$124,000" by the end of this year. This is not investment advice, of course, but so far, Bitcoin’s price action has been largely in line with our expectations.
David Puell's analysis is based on on-chain data indicators and Bitcoin's "cyclical characteristics", which is the performance pattern of Bitcoin in previous bull markets. He predicts that Bitcoin will continue to rise to new highs, form highs, and then potentially experience a major correction like in 2022. He pointed out:
The current market environment should belong to the "middle of the bull market". If we look at the path from the "lowest point to the highest point", I think the bull market process has probably gone 55% to 65%.
According to on-chain data calculations, this means that Bitcoin’s cycle high may fall between “$126,000 and $134,000.” However, David Puell added that there is room for upward revisions to these price targets if the market accelerates further.
This also echoes the market's view that "the increase in each round of Bitcoin's bull market gradually decreases." Assuming that the high point of Bitcoin in this bull market is $134,000, this price is only double the historical high in 2021 ($69,000), while Bitcoin achieved the previous cycle (2017 to 2021) Triple increase.
David Puell said that ARK Invest has prepared for the possibility of such "diminishing gains", but the data is still inconclusive.
In fact, ARK Invest CEO Cathie Wood made a bold prediction at the beginning of the year that Bitcoin could soar to between $1 million and $1.5 million by 2030, with a base price target of $650,000.
David Puell added that how high Bitcoin can rise depends to a certain extent on the incoming Trump administration, such as the selection of the chairman of the U.S. Securities and Exchange Commission (SEC) and the Federal Reserve’s (Fed) monetary policy decisions. Attitude, whether to support risky assets, etc., these are the key factors that affect the trend of Bitcoin market.
In addition, he also specifically mentioned that the "Bitcoin strategic reserve" is still a big variable. If it can be finally implemented, it will not only be the icing on the cake, but "add an extra layer to the cake."
However, Bitcoin cannot rise forever. David Puell reminded that due to market cycles and seasonal patterns, Bitcoin will inevitably peak and fall into a bear market again, and may even plummet 70% from its historical high. As for Bitcoin Whether the currency can establish a solid bottom will also depend on how high the highs of this bull market can soar.
"The bull market has reached the "mid-term stage"! Ark Analyst: Bitcoin is expected to soar to $124,000 by the end of the year. This article was first published on (Block Guest).
