Bitcoin price bounced back on Wednesday, ending a two-day retreat that pushed it near the $90,000 level.
Bitcoin’s (BTC) rebound happened after a major court victory by Tornado Cash, a crypto mixer. In a ruling, a three-judge bench said that it was wrong to sanction its smart contract. Coinbase, the biggest crypto exchange in the US was part of the companies that supported the company.
This victory means that the crypto industry is securing some legal wins in the US, which will lead to more regulatory clarity. On top of this, there is a rising hope that Donald Trump’s administration will be friendly to the crypto sector.
Meanwhile, crypto analysts believe that the recent pullback was a mere retracement, as the bullish view was still intact. In an X post, Charles Hoskinson, a crypto millionaire who founded Cardano, predicted that the coin would rise to between $250,000 and $500,000 in the next 12 to 24 months.
His view is that more companies will start moving some of their assets to Bitcoin, as MicroStrategy and El Salvador have done. Today, MicroStrategy owns BTC coins worth $32 billion, while its market cap stands at over $70 billion.
If Bitcoin moves to $500,000 and its supply remains at the current 19.6 million, it would have a market cap of over $9.75 trillion. That would make it a bigger asset than NVIDIA and Microsoft combined.
A key bullish case for Bitcoin is that it took over 15 years to move to $100,000, meaning that it will take a shorter period to get to $200,000. For example, the Dow Jones reached $10,000 in 2010 and $20,000 in 2020. It then took two years to get to $30,000 and less than two years to move to $40,000.
Bitcoin price cup and handle points to a jump to $122,000
The weekly chart shows that the BTC price formed a cup and handle pattern whose upper side was about $68,800. The depth of this cup was about 78%. Therefore, measuring that distance from the upper side means that the coin will jump to $122,000 in the near term.
Further supporting the bullish case is the fact that Bitcoin price formed a golden cross chart pattern as the 200-day and 50-day moving averages crossed each other. Historically, it tends to have major moves after forming this cross.
The bullish view will become invalid if the coin falls below the lower side of the handle at $49,523.
Read the full article here