A recent technical analysis of Bitcoin (BTC), reportedly prepared by CitiFX for its institutional customers, points to a potential peak of $ 318,000 sometime in December 2021.
In a supposed customer note seen by Twitter commentator Alex on November 14, Citibank CEO Tom Fitzpatrick examines the long-term trend in the price of bitcoin, characterized by “unthinkable rallies followed by painful adjustments.”
It should be noted that the three main bullish periods of BTC have been increasing so far. Initially, there was a 10-month period from 2010-2011, followed by a two-year period from 2011-2013 and finally a three-year period covering 2015-2017.
Conversely, Fitzpatrick claims that the correction period after the last two bulls remains stable for about 1
This, according to the analysis, puts us in the middle of a scourge that began in early 2019 and is potentially set to run for four years until the end of 2022.
It could be argued that such an extended bull would lead to even higher levels, and drawing up a scheme of “what looks like a very well-defined channel” over the past seven years gives Fitzpatrick his $ 318,000 bitcoin forecast. in December 2021.
While acknowledging that this figure may seem extremely unbelievable, he points out that it “would only be a low to high rally of 102 times (the lowest rally so far in percentage terms) at a time when the arguments in favor of bitcoin would could be in their most convincing ever. “
These arguments include a change in the monetary policy of the United States Federal Reserve that occurred during the impact of the coronavirus pandemic. This is characterized by a huge and sustained increase in new money production, with less intention to limit this once the economy and employment rise again.
Cointelegraph contacted Citibank for further comments on the report, but did not receive a response at the time of publication.