Analyst expects Bitcoin (BTC) to reach $250,000 in January as ‘euphoria’ kicks in

  • Bitcoin has suffered an extended correction shortly after reaching an all-time high of $69,000.
  • Analyst Matthew Hyland predicts a 150 percent rally once Bitcoin reaches the much anticipated $100,000 at the end of the year.

Bitcoin experienced a strong correction after finding resistance around $69,000 and failing to climb above $70,000. Analysts pointing to numerous prediction models believe that in the next few weeks, Bitcoin will reach as much as $100,000. One of those is PlanB’s Stock 2 Flow model which has accurately predicted Bitcoin price movement since its release in 2018. According to its creator, Bitcoin will end the month of November trading above $98,000 and will go on to reach over $135,000 by the end of the year.

Read more: PlanB unveils Bitcoin’s “worst-case scenario for 2021”, – $135,000 by December

While some expect that the bullish cycle will end at the $100,000 top, crypto technical analysis and on-chain data analyst, Matthew Hyland, says this will trigger the next and final part of a bubble ‘euphoria.’

The analyst cites the 2017 bull run when Bitcoin rallied by 150 percent from $8,000 to $20,000 in 22 days between November 24, 2017, to December 16, 2017. This he notes was the euphoria stage of the bull run and something that could easily repeat in the coming days. If Bitcoin reaches $100,000 and enters into this cycle, the digital asset is likely to rally as high as $250,000 in January.

According to our data, Bitcoin is exchanging for $65,000 at the time of press. This comes after a violent price movement in which Bitcoin began with touching $69,000 to mark its new all-time high. After rejection at this level, a steep correction saw the digital asset fall to the $63,000 levels before rebounding to trade just above $65,000.

The radical price movement has largely been blamed on the just-released Consumer Price Index. Released a few hours ago, the report by the U.S. Bureau of Labor Statistics showed a sharp 6.2 percent annual rise breaking a 30-year record. Amid rising inflation, Bitcoin is set to continue being a top performer surpassing even its main rival and widely regarded as the best inflation hedge asset, gold.

Taproot upgrade to keep Bitcoin in the network race

Although Bitcoin at $100,000 is still a long way from realization, one key development later this week holds much promise.

Taproot upgrade is expected to finally be activated this week. The upgrade is the first in nearly four years. It will see the network security and privacy measures improved, reduce fees for multi-signature and enhance wallet functionality. In addition and perhaps the more critical upgrade is the expansion of its smart contract and scripting capabilities. With this, Bitcoin will be able to compete with other networks like Ethereum and the ‘Ethereum-killers’ all of whom have become the networks that projects build on.

About Author

John Kiguru is an astute writer with a great love for cryptocurrency and its underlining technology. All day he is exploring new digital innovations to bring his audience the latest developments.

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