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Home Latest News Market Citibank analyst makes tentative $318K Bitcoin prediction for December 2021

Citibank analyst makes tentative $318K Bitcoin prediction for December 2021

A new technical analysis by CitiFX of Bitcoin (BTC) has indicated a possible peak of $318,000 for its institutional customers sometime in December 2021.

As highlighted by Twitter commentator Alex on November 14, the exact figure is of little value over such a long time frame. However, the analysis does suggest that Bitcoin “price is likely to continue to go up, and a lot.” The analyst Tom Fitzpatrick identifies Bitcoin as gold in the 21st century and discusses the long-term rise in Bitcoin price, which was marked by “unthinkable rallie followed by painful corrections.”

However in particular, up to now the three great bullish BTC periods have risen. At first, the period between 2010 and 2011 was ten months, followed by a period of two years between 2011 and 2013, and then by a period of three years spanning 2015–2017. In comparison, the correction period after the last two Bull Runs has been steady about 12 months, according to Fitzpatrick. This puts us in the center of the Bull Rally, which began in early 2019 and is likely to last four years until late 2022, according to the report.

It can be argued that even a longer bull run will lead to even higher prices, and drawing “what looks like a very well defined channel” in the past seven years gives Fitzpatrick its estimate of a Bitcoin price of $318,000 in December 2021. Although acknowledging that this number may sound incredibly unlikely, he notes “would only be a low to high rally of 102 times (the weakest rally so far in percentage terms) at a point where the arguments in favour of Bitcoin could well be at their most persuasive ever.”

According to cointelegraph.com, these arguments include a change in the United States Federal Reserve’s monetary policy which occurred when the coronavirus pandemic hit. This was characterized by a vast and sustained increase in new money production, with less intention to constrain this once the economy and employment pick up again.

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