Bitcoin (BTC) soared to a new all-time high of $94,002 before consolidating above $92,000, signaling strong upward momentum in its ongoing rally.
The latest surge comes as geopolitical tensions escalate and investor optimism grows, driving renewed interest in the market.
Analysts highlight a convergence of key technical indicators pointing to Bitcoin’s rally entering its most aggressive phase, potentially paving the way for a climb toward the much-anticipated $200,000 milestone.
Technical indicators signal an aggressive rally
In a recent TradingView post, TradingShot highlighted that Bitcoin’s price action is closely aligned with historical patterns, particularly the Pi Cycle theory, which has proven remarkably consistent in predicting Bitcoin’s long-term trends.
Bitcoin price analysis chart. Source: TradingShot/TradingView
The analysis notes that Bitcoin is currently trading approximately $30,000 below the Top Pi Band, a level that, once breached, typically signals the start of the parabolic phase.
The bullish momentum has been amplified by the weekly RSI recently closing above 70. During the last two bull cycles, such a breakout in the RSI marked the beginning of an aggressive rally.
Notably, in both instances, Bitcoin’s cycle peak occurred 54 weeks (approximately one year) after the RSI closed above 70.
Additionally, the 100-day moving average has shown to be a reliable support level during past parabolic rallies, suggesting it could also serve as a critical marker for traders in this cycle.
Projections and cautionary signals
With these signals converging, TradingShot projects a potential Bitcoin peak between $150,000 and $200,000 by late 2025, offering traders and investors a unique opportunity to capitalize on the final stages of this bull cycle.
Similarly, crypto trading expert Ali Martinez has forecasted that Bitcoin could rise to $138,000 in this cycle before facing a significant correction.
However, not all indicators signal clear skies. According to CryptoQuant, the Fear & Greed Index, which measures market sentiment, has exceeded 80 since November 12 and recently hit 90, its highest level since February 2021, when Bitcoin reached its previous peak.
This suggests that market sentiment may be overheating, a potential warning of a local top. At the same time, CryptoQuant CEO Ki Young Ju warned of a Bitcoin euphoria echoing concerns of a possible market correction.
While other metrics, like the MVRV ratio and new money inflows, remain below critical thresholds, the elevated Fear & Greed Index underscores growing risks of a correction in the short term.
Broader context: Geopolitical tensions and Trump’s influence
Market participants are increasingly optimistic about Donald Trump’s pro-crypto stance, with expectations that his policies could position the United States as the “crypto capital of the planet.”
Geopolitical tensions, including heightened uncertainty stemming from global conflicts, have added complexity to Bitcoin’s rise.
Despite these challenges, Bitcoin’s resilience remains evident, with its continued consolidation above $90,000 reinforcing strong market confidence and paving the way for a potential breakthrough to the $100,000 milestone.
Bitcoin price analysis
At press time, Bitcoin was trading at $93,269, gaining 1.67% in the last 24 hours and over 6% in the past week.
Bitcoin seven-day price chart. Source: Finbold
While Bitcoin’s surge toward $200,000 is supported by strong technical indicators, the rally is not without its challenges.
Nevertheless, the alignment of key technical patterns, combined with favorable macroeconomic conditions, presents a unique opportunity for investors to capitalize on Bitcoin’s historic bull cycle.
As momentum continues to build, traders are encouraged to closely monitor critical levels and signals to position themselves for Bitcoin’s next move.
Featured image via Shutterstock
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