It’s a very good start to the fourth quarter of 2021 as the Bitcoin (BTC) price has already gained 18% so far this month. As of press time, Bitcoin is trading 4.37% up at a price of $51,303 and a market cap of $966 billion.
Analysts are bullish over the BTC price performance in Q4 2021 and expecting $100K price levels. Crypto analyst Lark Davis shares multiple charts showing that the Bitcoin price rally isn’t just stopping just at $100K but will go far beyond.
The Bitcoin Stock-to-Flow model from PlanB shows that BTC will rally to a minimum of $135K by the end of December 2021.
Furthermore, the crypto analyst draws a comparison with the previous bull runs of 2013 and 2017. He notes:
If we consider the lengthening cycle and diminishing return theory then we could see Bitcoin going up to 200K for a blow off top for this cycle sometime in late 2021, but more likely early 2022.
During both the bull runs of 2013 and 2017, the BTC price rallied in excess of 300%. “If we assume same results then that gets to closer to 280k, if we assume diminishing returns then 200k,” he added.
Looking at the Bitcoin Monthly RSI
The relative strength index (RSI) has been one of the important indicators for analysts to make the right predictions. During the 2013 and 2017 bull runs, the Bitcoin RSI attained a double peak over 90 levels, twice. In this bull cycle, the RSI levels have crossed 90 only once.
Davis also compares the current Bitcoin price rally to the gold rush of the 70s. If bitcoin has to follow further the performance of the yellow metal then we are looking at a top anywhere above $200K.
The crypto analysts note that he holds the right to be wrong with his predictions. However, Lark Davis is pretty much confident that Bitcoin is surely hitting six figures i.e. a minimum of $100K from here.
Furthermore, he also notes that altcoins will peak in 2 to 3 weeks post the Bitcoin peak. But as a cautionary note to investors, Davis also adds:
Remember at some point the music will stop. Don’t be caught dancing naked by yourself holding a stinky fish. Take profits on alts! I remain bullish on all of crypto for this decade, but a bear market can be brutal. Have a plan!