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Bitcoin in 2025 – Bullish or Bearish?
By Mark Hunter
December 29th, 2024
Bitcoin has defied all expectations and smashed through the psychological barrier of $100,000. The question on everyone’s mind is, can it continue this run in 2025? I have taken a closer look at both the technical and fundamental metrics to provide an answer.
Fundamentals
It is undeniable that Bitcoin has reached unprecedented levels of adoption in the United States. Its appeal as a hedge against inflation has resonated with Americans seeking alternative stores of value, particularly amid ongoing economic uncertainties. The integration of Bitcoin into popular payment apps and platforms has made it easier than ever for Americans to use Bitcoin for both investment and daily spending. Fundamentally, Bitcoin has never been in a better position for mass adoption than it is now.
Technical Analysis
While the fundamentals may be stronger than ever, I have analyzed various technical indicators that suggest a correction is imminent. Firstly, Bitcoin is closing in on double its prior cycle top, which is an incredible run and one that won’t last forever. Secondly, the Fibonacci extension tool has accurately predicted the market’s moves to date, hinting at a final push up to around $112,000 before the cycle comes to an end.
Furthermore, I have looked at the Pi Cycle Top Indicator, which has a proven track record of predicting the cycle top. This indicator also suggests that Bitcoin still has some room for growth but not a significant amount. Lastly, the Relative Strength Index (RSI) shows us that Bitcoin is already hovering in the overbought region, and given this is the second time it has happened in this cycle, I expect a reset to follow.
Conclusion
While it may be hard to accept, all bull markets come to an end. Despite the incredible growth we’ve seen, the technical indicators are clear: Bitcoin’s run will not continue indefinitely. In my view, 2025 will see the end of this two-year bull market. While the fundamentals have never been stronger, the technical signs suggest that a correction is imminent.
It is essential to acknowledge these indicators and prepare for the possibility of a downturn. I am not suggesting a catastrophic crash, but rather a natural reset that is necessary for the growth of the cryptocurrency.
Source: fullycrypto.com
