A recent technical analysis of Bitcoin ( BTC ), prepared by CitiFX for its institutional clients, points to a potential maximum of $ 318,000 sometime in December 2021.

As Twitter commentator Alex noted on November 14, the exact figure has little value over such a long period of time. However, the analysis suggests that "the price of Bitcoin is likely to keep rising, a lot."

Describing Bitcoin as the gold of the 21st century, analyst  Tom Fitzpatrick first looks at the long-term trend of Bitcoin's price, characterized as it has been, by "unthinkable rallies followed by painful corrections."

However, it should be noted that the three main bullish periods for BTC so far have been increasing in duration . 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 spanning 2015-2017.

On the contrary, Fitzpatrick maintains that the correction period after the last two bull runs has remained stable around 12 months.

This, according to the analysis, puts us right in the middle of a hike that started in early 2019 and will potentially run for four years until the end of 2022.

It could be argued that such a prolonged rally would lead to even higher levels, and the chart of "what looks like a very well defined channel" for the past seven years gives Fitzpatrick his prediction of a $ 318,000 price for Bitcoin in December. 2021.

While he admits that this figure may seem highly unlikely, he notes that this "would only be a 102-fold rise from decline to rise (the weakest rise so far in percentage terms) at a point where the case for Bitcoin is fine. they could be the most persuasive in history. "

These arguments include a change in monetary policy from the United States Federal Reserve that occurred when the coronavirus pandemic struck . This was characterized by a  vast and sustained increase in the production of new money , with less intention of limiting it once the economy and employment recover.

Don't stop reading: