Sure! Here’s the rewritten content while retaining the HTML tags:
Bitcoin’s price continued its robust recovery on Thursday, approaching the key resistance level of $120,000. It has surged more than 10% since its September lows.
Summary
- According to Citigroup, Bitcoin could rise to $231,000 within the next year.
- This would represent a 93% increase from its current value.
- Bitcoin is benefitting from growing institutional interest and a decrease in supply on exchanges.
Citi forecasts Bitcoin price could reach $232,000
Wall Street analysts are becoming optimistic about Bitcoin (BTC) as demand continues to grow. In a report issued to clients, Citigroup outlined three potential scenarios for the cryptocurrency.
The bank’s base scenario predicts a 50% increase, bringing the Bitcoin price to $181,000 in the coming year. In its most optimistic outlook, Citigroup anticipates the coin could hit $231,000 during this timeframe.
Citi attributes its bullish outlook to the persistent demand from American investors and financial advisors. In its base scenario, the bank also predicts that Ethereum (ETH) will rise to $5,400 within the next year.
Other Wall Street firms are also sharing optimistic Bitcoin price predictions. For instance, BlackRock, which manages the largest crypto ETF, expects the cryptocurrency to reach $700,000 in the long run.
Moreover, Cathie Wood, the founder of Ark Invest, envisions Bitcoin soaring to over $2.4 million in the future.
The optimistic view of Bitcoin is driven by rising purchases from institutional investors, which has led total inflows in its ETFs to exceed $54 billion. This uptick in demand aligns with a significant drop in Bitcoin supply on exchanges and increasing mining difficulty.
As Bitcoin transitions into a safe-haven asset, it is frequently viewed as the digital equivalent of gold. In a white paper released earlier this year, BlackRock highlighted that BTC consistently outperforms traditional assets following major crises, such as the Covid pandemic and the onset of the conflict in Ukraine.
It also emphasizes Bitcoin’s role as an effective diversifier, given its lower correlation with the S&P 500, Nasdaq, and other assets.
BTC Price Technical Analysis
The daily timeframe chart indicates that Bitcoin’s price has rebounded over the past few weeks, currently sitting at its highest point since August 15.
It has surpassed the critical resistance level of $113,830, identified by the 50-day Exponential Moving Average.
Notably, the coin has formed a bullish flag pattern, comprising a vertical line and a descending channel, which often leads to further gains over time.
Consequently, the most likely scenario is an initial surge towards the year-to-date high of $124,200, followed by an approach to the psychological milestone of $125,000. After this, the Bitcoin price could extend to the extreme overshoot level of the Murrey Math Lines tool at $131,250.
