Bitcon price continued its strong recovery on Thursday as it moved close to the important resistance at $120,000. It has jumped by over 10% from its lowest level in September.
Summary
- Bitcoin price could jump to $231,000 in the next 12 months, according to Citigroup.
- Such a move would be a 93% jump from the current level.
- Bitcoin is benefiting from the rising institutional demand and falling supply in exchanges.
Citi predicts that the Bitcoin price could hit $232,000
Wall Street analysts are getting bullish on Bitcoin (BTC) as demand continues rising. In a research to clients, Citigroup delivered its three scenarios for the coin.
The bank’s base case is that the Bitcoin price will jump by 50% to $181,000 in the next 12 months. In its most optimistic scenario, the bank sees the coin hitting $231,000 in this period.
Citi attributed the bullish case to the ongoing demand from American investors and financial advisors. In its base case, the company also expects that Ethereum (ETH) price will jump to 5.4k in the next 12 months.
Citi, joins other Wall Street companies in providing bullish Bitcoin price forecasts. For example, BlackRock, which runs the biggest crypto ETF, predicts that the coin will jump to $700,000 in the long term.
Similarly, Cathie Wood, the founder of Ark Invest, sees it jumping to over $2.4 million in the long term.
The bullish case for Bitcoin is that most institutional investors are buying, which explains why the total inflows in its ETFs has jumped to over $54 billion. This rising demand has coincided with the substantial decline of Bitcoin supply in exchanges and the rising mining difficulty.
Bitcoin price will also benefit from its transition into a safe-haven asset since it is commonly seen as a digital version of gold. In a white paper released earlier this year, BlackRock noted that BTC always beats other traditional assets after a major crisis, such as the Covid pandemic and the start of the war in Ukraine.
It also touted it as a great diversifier because of its less correlation with the S&P 500, Nasdaq, and other assets.
BTC price technical analysis
The daily timeframe chart shows that the Bitcoin price has rebounded in the past few weeks and is now hovering at its highest level since August 15.
It has crossed the important resistance level at $113,830, the 50-day Exponential Moving Average.
Most importantly, the coin has formed a bullish flag pattern, which is made up of a vertical line and a descending channel. This pattern often leads to more gains over time.
Therefore, the most likely scenario is where the coin jumps initially to the year-to-date high of $124,200, followed to the psychological level at $125,000. The Bitcoin price will then jump to the extreme overshoot level of the Murrey Math Lines tool at $131,250.