Bitcoin’s Next Stop? Analyst Predicts $250K—Then Eyes $2-3M If It Eclipses Gold

Forget moon shots—Bitcoin’s gunning for the galaxy. One analyst just slapped a $250K price target on BTC, citing its tightening grip as digital gold. But here’s the kicker: if it flips gold’s market cap? That’s a $2-3 million per coin scenario.

Wall Street’s still clutching its pearls, of course. Meanwhile, crypto traders are stacking sats like there’s no tomorrow—which, at these speeds, might just be true. Goldbugs, meet your obsolescence.

Funny how the ‘barbarous relic’ suddenly looks so... analog.

TLDR

• Fundstrat’s Tom Lee predicts Bitcoin could 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 roughly twice Gold’s magnitude during similar breakout phases

Bitcoin continues to attract attention from analysts who see striking similarities between its current price action and historical 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 trends and expectations of a dovish Federal Reserve as tailwinds for Bitcoin. He cited a supply-demand imbalance that could drive prices higher.

“95% of all Bitcoin have been mined, but 95% of the world doesn’t own Bitcoin,” Lee noted. This creates potential for more buyers over the next decade.

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 imply 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 historic movements. His analysis shows bitcoin following the same pattern Gold displayed around its 1980 all-time high.

Bitcoin is following the Gold ATH structure. It then 2Xed from the lows. Discussed: https://t.co/eux0csHx5b pic.twitter.com/C4sIrSgdPl

— Charles Edwards (@caprioleio) August 21, 2024

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.

The analysis covers both upward and downward price movements. Bitcoin’s recent close appears less promising than Gold showed at the same stage in its structure.

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 surge from a similar technical position in its historic pattern.

The analyst 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 juncture. 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 important. A break above key resistance could confirm the bullish pattern 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 continued mining.

Institutional interest continues to grow according to Lee’s assessment. This could support higher valuations as more capital allocates to Bitcoin.

The current market structure shows Bitcoin responding to macroeconomic factors. Global liquidity trends appear to influence cryptocurrency prices alongside traditional assets.

Bitcoin closed recent sessions below the $110,000 level Edwards identified as crucial for the next leg higher.