KEY POINTS

  • BTC price will reach $75,000 if it breaks $14,200
  • Bitcoin log chart shows that every time it closes above the 0.65 Fibonnaci level, it sends BTC to a rally, according to popular analyst
  • BTC at $8,600 is in the right spot based on its stock-to-flow forecast

While bulls took a break after Bitcoin (BTC) failed to hold above $9,000, and parked BTC to $8,600 as of press time, some traders fear that it could return to the $7,000 region. For BTC to get out of this danger zone, traders have to make a push at least over $9,000 and possibly cross above the 200-day moving average.

One analyst highlighted by NewsBTC, however, thinks that Bitcoin is about to set off a parabolic move if it cracks the $14,200 barrier. NebraskanGooner, with close to 38K followers on Twitter, tweeted his analysis, "History tells us that a weekly close above the 0.65 fibonacci will send BTC into a new parabolic bull run. The 0.236 fib has often acted as a bottom and the 4.23 fib has been exceeded each time. This means a weekly close above $14,200 would see BTC reach over $75,000."

On his chart, NebraskanGooner marked several instances of BTC triggering parabolic trajectory when its weekly price closed above 0.65 of the Fibonacci retracement. This pattern that he observed occurred three times since 2013, and he also indicated how the 0.236 Fibonacci level served as the bottom for BTC's price after each preceding rally.

Now, what NebraskanGooner is alluding to is that it is about to happen again. The price of BTC just rebounded from the 0.236 level and is potentially about to register another price acceleration that could reach $75,000.

This analysis is a fresh take from using trendlines on the log chart to determine BTC's next possible course. Galaxy, another popular trader, forecasts Bitcoin to reach $100,000 if its price breaks the price ceiling marked by a trendline.

Several fundamental factors are also supporting a BTC rally, and that includes the imminent halvening, additions to its layer one, and its stock-to-flow is on point with forecasts. Cointelegraph reported that at $8,600, Bitcoin, as of Monday, Jan. 20, is exactly where it should be. Stock-to-flow measures new BTC created and the existing coins in circulation.

And the stock-to-flow graph of Digitalik shows that by 2021, Bitcoin is poised to hit a $100,000 value.

bitcoin-ripple-litecoin-invest-cryptocurrency-tax-getty_large There is volatility in the cryptocurrency market. Photo: Getty Images