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Based on historical trend patterns, a crypto analyst has forecasted that Bitcoin could hit a staggering peak of $400,000. This ambitious price target would require Bitcoin to jump over 6X its current price, marking a historical milestone, as the cryptocurrency’s market capitalization would surpass $7 trillion.
Bitcoin Power Law Points To $400,000 Increase
Bitcoin’s price dynamics have been hinting at a potential bullish surge, as the cryptocurrency has steadily maintained a price above crucial resistance levels around $60,000. According to Crypto analyst Ali Martinez, the broader crypto market sentiment shifted to “Greed” again following Bitcoin’s recent price surge to $64,750.
Given Bitcoin’s market movements, Martinez has maintained an optimistic outlook for the cryptocurrency. He disclosed in a recent X (formerly Twitter) post that Bitcoin could see its price potentially skyrocketing to $400,000 if the Bitcoin power law holds true.
The Bitcoin power law is a mathematical relationship between Bitcoin’s price and time. This law predicts that the price of Bitcoin will rise to $100,000 between 2021 and 2028, with a firm assurance that in 2028, the cryptocurrency’s value will never drop below $100,000. Additionally, the law also forecasts that Bitcoin’s price will hit $1 million per coin sometime between 2018 and 2037, establishing that after 2037 the price will never fall below $1 million.
In his post, Martinez revealed that his projected $400,000 price leap would mark the cryptocurrency’s next market top, surpassing its current March all-time high of above $73,000 by approximately 440%. He has based this ambitious price projection on not just the long-term Bitcoin power law but also on historical market trends.
Martinez presented a historical price chart of Bitcoin dating back to 2011, forecasting that the timeline for this projected $400,000 price surge could occur in 2025. The analyst also identified three crucial price levels for Bitcoin: $392,532 price mark as a resistance level, with support identified at $37,146 and linear regression fit around $104,693.
While a few crypto members see Martinez’s $400,000 Bitcoin projection in a positive light, others have remained skeptical, either doubting the possibility of such a dramatic surge or suggesting that a price increase between $160,000 and $200,000 was a more realistic target.
BTC To Leave Bearish Trends Behind
The price of Bitcoin has been on a steady upward momentum over the past few weeks. According to data from CoinMarketCap, Bitcoin rose above $64,000 this week, marking a 2.88% increase in its price.
Given the cryptocurrency’s recent price surges, crypto analyst, Jelle has declared that Bitcoin’s market structure is inches away from leaving a bearish trend and completely turning bullish. He revealed that the pioneer cryptocurrency is already locked in two higher lows and is coming close to achieving a higher high as well.
As a result of these developments, Jelle has predicted that the $65,000 price mark was a key resistance level to break, indicating a potential rally to new highs thereafter.
Featured image created with Dall.E, chart from Tradingview.com