Cryptocurrency analyst and trader Alessio Rastani believe that Bitcoin is entering the final stage of a major bull trend considering the recent surge in its price. Bitcoin seems to be reaching the much-anticipated $100,000 soon as it breaks out the classic bullish structure.
Bitcoin to break all-time high soon
In a recent interview, the experienced trader and crypto analyst Alessio Rastani opinionated that Bitcoin will break its all-time high value of nearly $65,000, which was recorded in April 2021 by the end of the year. To back up his prediction, Rastani cited the Elliott wave theory which divides the upward price trends into five waves.
Elliott wave analysis
While explaining the standard Elliott wave model, Rastani stated that the price moves in the direction of a major trend in five waves. In case the price moves against the trend, it moves back to the original trend in three waves. In other words, the counter-trend moves in three waves, and the major trend consists of five waves. He mentioned that he approaches the Bitcoin market through the Elliott wave model because Elliott theory is the only chart analysis model that gives context. He believes that the Elliott model gives an idea of where the prices are moving in the big picture, which is hard to find in any other chart analysis.
The veteran trader also demonstrated an Elliott wave model that is applied to Bitcoin from 2011 to the present. Based on the chart, the first bull market or the first five-wave major trend continued from 2011 to 2013. Then there was a bear market from 2013 to early 2015, having a counter-trend composed of three waves. Alessio Rastani continued to explain that Bitcoin has witnessed a major bull trend from January 2015 to 2017, where Bitcoin was at nearly $200 and raised all the way up to $20,000. This major bull market also consisted of five waves strengthening Rastani’s prediction based on Elliott wave model analysis.
The Bitcoin market had gone through a bear market correction from 2017 to the end of 2018 with three waves. The next major bull trend started in 2018, and it hasn’t yet completed five waves. Based on the chart, The all-time high value of Bitcoin, which was around $65,000 in April, is labeled as the third smaller wave of the major trend. As per the analysis, we are at the fourth wave in the Elliott chart analysis and beginning to rise to the fifth smaller bull market. As a result of this analysis, Bitcoin is expected to reach $100,000 in the next few months.
Alessio Rastani also mentioned that he is expecting a bear market after the completion of this major five-wave bull market. When asked about whether he thinks that the all-time high value of Bitcoin crosses this year, Rasatni stated that he thinks so. He also stressed that as long as Bitcoin remains above the September low value of around $40,000, the odds are high that Bitcoin could make all-time highs likely by the end of the year.
Rastani admitted that he hopes the Bitcoin exchange-traded fund (ETF) will not come out before it hits the $100,000 mark. The expert mentioned a few instances from the past where markets crashed or reversed their direction after releasing ETFs. Rastani mentioned the research by behavioral finance expert Jason Goepfert and predicted that the next Bitcoin bear market may coincide with a broader downtrend in traditional markets and stated that can come in the next couple of years. Rastani stated, “Stock markets and Bitcoin are risk-on markets. When there is a high appetite for risk, both markets go up. But, when there is a low appetite for risk, they go down”.
Other predictions regarding Bitcoin’s bull market
The Standard Chartered team of researchers also predicted Bitcoin to hit $100,000 by the early next year. The team is led by the global head of emerging market currency research, Geoffrey Kendrick. The team mentioned Bitcoin’s potential to become “the dominant peer-to-peer payment method for the global unbanked” while citing their predictions about Bitcoin’s bull trend.
The founder of Gokhshtein Media and PAC Global, David Gokhshtein, also estimated that Bitcoin price would reach the $100,000 mark before the end of 2021. Gokhshtein told Business Insider, “Not everybody’s going to come out publicly and tell you that they’re buying Bitcoin, but they are. There’s too much money in the market. Way too much money. Institutions did not come in here to play for five minutes”.
Gokhshtein’s statements have appeared soon after an investment firm called George Soros’ revealed that it owns Bitcoin. The latest report of JP Morgan and Chase also confirmed that the institutional investment firms prefer Bitcoin over gold as a hedge against inflation. The banking giant estimated Bitcoin to reach $140,000 in the long term in a study that was released in May 2021.
The rise in HODLing sentiment
On-chain analytics provider Glassbode emphasized the rise in holding sentiments among the investors of Bitcoin despite the increase in its price. In the past seven months, long-term BTC holders increased their BTC accumulation by more than 2.37 million. Only 186,000 BTC were newly minted during the same period, which suggests that BTC whales are accumulating more than the minted Bitcoins.
The number of active Bitcoin addresses increased by 19% in October, which has never been the case from the rapid bull market in December 2020. Glassnode also reported that Bitcoin balances in centralized exchanges decreased hugely, further strengthening the argument that Bitcoin investors choose to HODL.