Bitcoin (BTC) Price: Expert Sets $250K Target, Might Reach $2-3 Million Based Upon Gold Contrast
Fundstrat’s Tom Lee predicts Bitcoin might reach $150K-$250K this year, with long-term targets of $2-3 million. Bitcoin’s price pattern closely mirrors Gold’s 1980 breakout structure on 2-day timeframes. Analyst Charles Edwards says Bitcoin could “go bananas” if it closes above $110K. 95% of Bitcoin has been mined but 95% of the world doesn’t own it, creating supply-demand imbalance. Bitcoin’s volatility has been approximately twice Gold’s magnitude during similar breakout phases.
Bitcoin continues to attract attention from experts who see striking similarities between its current cost action and historic patterns from traditional assets. Recent analysis suggests the cryptocurrency may be positioned for another major move.
Fundstrat co-founder Tom Lee shared his outlook during a CNBC interview on Monday. He views Bitcoin’s recent pullback as healthy consolidation rather than a downturn. Lee pointed to global liquidity patterns and expectations of a dovish Federal Reserve as tailwinds for Bitcoin. He mentioned a supply-demand imbalance that might drive prices higher.
When discussing price targets, Lee mentioned $150,000 as a possibility. He then expanded his forecast to include $200,000 or even $250,000 for this year. Looking further ahead, Lee compared Bitcoin to Gold’s market value. He estimates above-ground Gold at $23 trillion, which would suggest a Bitcoin price of $1.2 million if it matched that network value.
Chart Patterns Show Gold Similarities
Charles Edwards from Capriole Investments has been tracking how Bitcoin’s price structure mirrors Gold’s historical movements. His analysis shows Bitcoin following the same pattern Gold displayed around its 1980 all-time high.
The comparison reveals Bitcoin consolidated at its 2021 high similar to how Gold behaved around its 1980 peak. Gold’s consolidation ended with a breakout that doubled its price. Bitcoin’s breakout has indeed followed a similar path. Edwards notes that Bitcoin’s volatility has been roughly twice as high as Gold’s during comparable phases.
Bitcoin (BTC) Price Current Technical Levels Matter
Edwards highlights a key technical level for Bitcoin’s next move. He states that closing above $110,000 could trigger what he calls a “bananas” rally. This threshold aligns with the Gold comparison chart. Gold saw a rise from a similar technical position in its historical pattern.
The expert acknowledges the two assets could diverge from here. However, if the pattern continues, Gold’s path may indicate Bitcoin’s next direction. Bitcoin’s current price action sits at a critical point. The cryptocurrency has shown both the upside potential and downside volatility that characterized Gold’s movement.
Technical analysis suggests the next few price closes will be crucial. A break above key resistance could confirm the bullish trend continuation. Edwards’ chart work spans multiple timeframes to identify these patterns. The 2-day Bitcoin chart aligns with Gold’s weekly movements from decades ago.
Lee’s fundamental analysis supports the technical picture. He believes Bitcoin offers advantages over Gold as a store of value. The combination of limited supply and growing demand creates what Lee sees as a long-term bullish setup. Bitcoin’s fixed supply of 21 million coins contrasts with Gold’s ongoing mining.
Institutional interest continues to grow according to Lee’s assessment. This may support higher valuations as more capital allocates to Bitcoin. The current market structure shows Bitcoin responding to macroeconomic factors. Global liquidity trends seem to influence cryptocurrency prices along with traditional assets. Bitcoin closed recent sessions below the $110,000 level Edwards identified as crucial for the next leg higher.
The article was originally published on CoinCentral.
