Bitcoin has been on the rise, falling above $70,000 and $72,000 in the past two days, sparking a wave of demand. At spot rates, prices are moving within a narrow range, but the upward trend remains. Despite some areas of weakness, the formation of candlesticks on the daily and weekly charts is a sign of strength, at least as seen earlier today.
Is Bitcoin preparing for a 6x jump to $462,000?
In a post about X, one analyst said think Bitcoin not only surpassed its all-time high of $74,000, but could easily rise six times to above $462,000 in the coming sessions. Supporting this outlook, the analyst stated that the coin has broken above key resistance levels and Fibonacci extension levels reflect a change in trend following the Q3 2024 sell-off.
Based on analyst ratings, historical price movements indicate that BTC will peak between the 1.618 and 2.272 Fibonacci extension levels. Technical analysts use this tool to predict how fast prices will rise or fall based on a specific range.
Applying the same pattern to the current cycle could easily see Bitcoin skyrocket from $174,000 to $462,000, assuming the historical guide and Fibonacci expansion levels remain in effect. These two levels represent the lower and upper limits of expansion levels that define the peak zone of past cycles.
Although this prediction is bullish, you should know that the range to which you fix Fibonacci extensions is subjective. Because of this, it varies from analyst to analyst, and the potential peak shifts accordingly.
Despite everything, the consensus is that Bitcoin could break out and hit new all-time highs in Q4 2024. Moving on to X, another analyst said that Bitcoin is already within a bullish breakout formation and easing above a descending channel or bullish flag. At the same time, the price is breaking above the resistance of the “cup and handle” pattern.
Institutions that buy as BTC recovers
If the bulls take over and push prices higher, this development could support a rally in Q1 2024. It would then mark a resumption by the bulls, an encouraging development following the 30% drop from March highs.
This wave of optimism has also seen an influx of institutional investors gaining exposure through spot Bitcoin ETFs. According to soso valuelarge amounts of money are flowing in as financial institutions buy more shares on behalf of their customers.
On October 29, a US Spot Bitcoin ETF issuer purchased $870 million worth of BTC-backed shares on behalf of its clients. BlackRock’s IBIT received $642 million, with over $24.9 billion of BTC under management.