Originally published on: September 23, 2024
Bitcoin’s price is on the verge of breaking past its recent all-time high, with projections soaring above $80,000 in the near future. However, the anticipated milestone of $100,000 may not hold the same weight once adjusted for inflation, according to industry experts.
### The Inflation Adjustment: $83,000 – The Real ATH
Luke Broyles, a prominent Bitcoin analyst, suggests that reaching the $100,000 mark might not be as monumental as perceived, considering the impact of inflation. Broyles points out that adjusting for inflation, the actual all-time high price from 2021 would be around $83,000 today. This recalibration brings a new perspective to Bitcoin’s price trajectory.
### Implications of Inflation on Bitcoin’s Value
Analyzing data from U.S. inflation calculators further validates Broyles’ stance. If an item was purchased for $69,000 at the previous peak, today its equivalent value would be $80,159.88, taking into account a cumulative inflation rate of 16.2%. This comparison underscores the nuanced understanding required to gauge Bitcoin’s true value in the current market landscape.
### Technical Analysis: Bitcoin’s Path Ahead
Despite a historically bearish September, Bitcoin has seen an 18% surge in price over the past two weeks, signaling a potential shift towards a bullish momentum. Chart analysis reveals that Bitcoin is approaching a crucial resistance level at $65,000, which, if successfully breached, could prompt a significant uptrend and a shift in market sentiment.
### Key Resistance Levels and Price Projections
The immediate challenge for Bitcoin lies in flipping the $65,000 barrier into a support level. Once achieved, the market is poised for a trend reversal, paving the way for higher highs and higher lows, and potentially leading to a new uptrend. Additionally, resistance levels at $71,500 and beyond $85,000 pose crucial thresholds for Bitcoin’s price action in the coming weeks.
### Conclusion: Bitcoin’s Path to Recovery
As market dynamics evolve, Bitcoin is primed to confirm a bottom and embark on a trajectory towards higher prices. The unfolding megaphone pattern hints at a potential rally towards $86,000, projecting a 34.37% upswing in the near term. However, investors should exercise caution and conduct thorough research before making any investment decisions as the market remains inherently unpredictable.
By delving into the intersection of Bitcoin’s price targets, inflation adjustments, and technical indicators, stakeholders can gain a comprehensive understanding of the cryptocurrency landscape and make informed decisions amid the evolving market scenarios.
