By Tobi Loba
An analyst at Citibank, the consumer division of financial services multinational Citigroup, has recently predicted that Bitcoin (BTC), the largest cryptocurrency by market capitalization, would attain $318,000 by December 2021.
This was shared on Twitter by a crypto enthusiast identified as Alex on 14th November 2020. However, Alex posited that “This kind of technical analysis is of little value. There is no edge in guessing targets so far in time with TA.
“All we know is that price is likely to continue going up, and a lot. But readers loves this. What matters here is Citi’s clients being exposed to the bitcoin moon.”
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Citibank Analyst Predicts $318,000 for Bitcoin (BTC)
Describing Bitcoin as 21st-century gold, the Citibank analyst, Tom Fitzpatrick, considered the long-term trend of the price of Bitcoin that has been characterized by unthinkable rallies and painful corrections.
Considerably, the three major bullish trends ever printed by BTC since its emergence in 2009 have been within a long time range. There was a 10-month run from 2010–2011, followed by a two-year run from 2011–2013, and finally, a three-year run covering 2015–2017.
Similarly, the analyst Fitzpatrick stated that the period of correction that followed the last two parabolic movements of Bitcoin price has remained stable around 12 months.
Considering the analysis, the past trends have now placed BTC in the middle of a bull run that commenced in early 2019 and is likely to run until late 2022.
The bull run, as earlier indicated, is expected to run for four years, which would lead to even higher price levels, and charting “what looks like a very well defined channel” over the past years made the Citibank analyst to foresee $318,000 for BTC by December 2021.
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According to Fitzpatrick, this figure may sound exorbitant, but this “would only be a low to high rally of 102 times (the weakest rally so far in percentage terms) at a point where the arguments in favour of Bitcoin could well be at their most persuasive ever.”
Meanwhile, Bitcoin has recently regained $16,000 support and surging towards $16,500. At the time of filing this report, BTC is trading at $16,300.45, with a 1.67% price uptrend in the last 24 hours.