Analysts are bullish on Bitcoinโs chance of rally and are suggesting that the king coin may have begun a rally and could hit $50,000 in weeks.
A Bitcoin analyst has said that Bitcoin (BTC) is already displaying signs of an early bull market, while another predicts $50,000 this month. This means that BTC could end the year considerably higher than its current price of $43,573, according to CoinMarketCap.
Bitcoin has gained more than 13% in the past week, continuing its bull rally. According to analyst Alistar Milne, the bear market BTC faced is theโ worstโ that Bitcoin has ever seen while under the 200-week Moving Average price. Milne predicts that the 50-week Moving Average will cross that of the 200-week Moving Average, forming a golden cross as it does so. This movement indicates a potential bull market for the worldโs largest crypto according to market capitalization.
Bitcoin May Hit $50,000
CryptoCon, another crypto analyst and Bitcoin advocate, has offered a bullish forecast for Bitcoin. In an X post, CryptoCon compared Bitcoinโs current cycle with the 2015/2018 cycle. Interestingly, the model predicted Julyโs early top and Augustโs bottom, just as it happened in 2015. The model also predicted that Bitcoin will hit $47K, a level the king coin is already nearing. According to CryptoConโs BitTime model, Bitcoin will experience โa long sideways periodโ in early 2024, and could hit $130k by December 2025.
Yet another analyst, CredibleCrypto, set a price tag for Bitcoin at $50,000 this month. The analyst believes that Bitcoinโs gains over the last week and month, in addition to $30 million in spot bids, could push the asset to $50k. According to CredibleCrypto, this is likely to happen in the third week of December. However, the analyst admonished traders to be cautious.
Bitcoinโs upward movement is also evident on the Deribit exchange as BTC and Ether (ETH) options trading hit a new high on the platform. According to the exchangeโs Chief Commercial Officer Luuk Strijers, the cumulative dollar amount locked in BTC and ETH options contracts, including open and outstanding contracts, hit $23.6 billion on Friday. Bitcoin accounted for 67% of the total. Speaking to CoinDesk, Strijers said:
โDeribit options notional open interest has reached a new ATH with $16 billion in BTC options and $7.6 billion in ETH options outstanding, resulting in a total of $23.6 billion. When adding the $2.2 billion in perpetuals and futures OI, Deribit has for the first time reached the $25 billion milestone (total now $25.8B!).โ
El Salvador Likely Contributing to Bitcoin Rally
Several factors are driving the Bitcoin rally and pointing to possible bullishness. A major one is El Salvadorโs recent announcement of its Freedom Visaย and citizenship program in partnership with Tether. The program requires interested persons to invest $1 million in the country via BTC or USDT. The program is restricted to 1,000 investors each year, possibly earning an annual $1 billion for the government. Critics have argued that the price point is too high and would deter people from trying. In comparison, similar investments in the Caribbean start somewhere around $100,000.
On Tuesday, Coinspeakerย reportedย that El Salvadorโs Bitcoin investment has turned a profit amounting to $3.6 million. El Salvador is the first country to officiallyย declare Bitcoin as a legal tender, making the announcement in 2021. This profit is likely to increase if Bitcoin hits $50,000, especially as President Nayib Bukele has to plans to sell.
In more Bitcoin news, a large amount of BTC mined in the โSatoshi Eraโ became active recently and moved to trading desks and custodian services. On Monday, an early minerย moved 1,000 Bitcoins, according to data from CryptoQuant.ย
