Analysis firm CryptoQuant: Bitcoin faces short-term downside risk, expected to reach $160,000 by 2024.
Bitcoin has shown strong performance in 2023, with a gain of over 180% during the year. Supported by a series of positive factors such as the halving and the approval of a spot ETF, CryptoQuant predicts that BTC may experience a short-term correction but has the potential to surge to $160,000 in the next cycle.
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BTC Could Reach $160,000
Crypto analysis firm CryptoQuant, in a report shared with CoinDesk, stated that bullish factors for Bitcoin could push its mid-term target to $50,000. These bullish factors include:
Market valuation cycle
Recovery in on-chain activity
Halving of block rewards
Macroeconomic outlook
Approval of Bitcoin spot ETF
Continued growth in stablecoin liquidity
CryptoQuant suggests that the mid-term target could be $54,000, with a peak of $160,000 during the cycle.
Caution Needed for BTC Short-Term Correction
CryptoQuant also cautions in the report that due to significant unrealized gains among short-term investors, there is still a risk of price correction in the short term.
The analysts state:
Given that short-term Bitcoin holders are experiencing higher unrealized returns, historically, this has happened before price corrections. Therefore, there is some risk of price adjustment for Bitcoin.