As Bitcoin continues to dominate headlines, many investors are asking: Can Bitcoin really hit $150,000 by the end of the year? While recent surges have reignited excitement, market analysis indicates significant risks. A bearish Relative Strength Index (RSI) divergence, reminiscent of the 2021 market cycles, suggests that Bitcoin could undergo a sharp correction—potentially trading down to around $64,000.
Current market sentiment is fraught with skepticism. Bitcoin’s recent ascent to $112,000 appeared hopeful until a quick downturn below $105,000 put this optimistic target in jeopardy. Investors must be cautious as analysts highlight the emergence of an inverse cup-and-handle pattern, which could trigger a significant sell-off if Bitcoin declines below key support levels.
- Resistance Level: $105,000 (20-day EMA)
- Support Level: $100,800 (neckline of the inverse cup-and-handle)
- Potential Correction Target: $91,000
Market experts have issued warnings about the implications of a substantial bearish divergence on Bitcoin’s weekly chart. This technical setup has historically foreshadowed severe price retractations, indicating that traders should brace for potential declines similar to past cycles.
Trader insights also indicate that without significant movement above the parabolic trendline, Bitcoin’s chance of seeing the $150,000 mark by the end of 2025 looks slim. Veteran trader Peter Brandt has emphasized the importance of regaining these critical levels, stating that failure to do so could effectively signal the end of Bitcoin’s current bullish trend.
Contrarily, not all analysts share a pessimistic outlook. Some, recognizing similarities with gold’s breakout in the 2000s, see a potential for Bitcoin to mimic that trajectory and overcome current resistance. Additional factors such as the NUPL/MVRV ratio breaking above 1.0 could signal the beginning of a new bullish trend that supports optimistic projections of Bitcoin reaching between $150,000 and $175,000.
In summary, while a rally to $150K remains a hopeful possibility, current market indicators suggest a careful watch on key price levels. With so much volatility, thorough research and vigilant trading practices will be essential for investors navigating the Bitcoin landscape in the months ahead.
