According to eToro analyst Simon Peters, after reaching $23,000, the next milestone for the price of bitcoin is $25,000.
In fact, Peters himself had already speculated in early December that this might be the price threshold that could be reached during this rally, and now he confirms that the short-term assumption remains the same.
However, he warns investors that the path could be bumpy.
While the $25,000 mark remains an important short-term target, there could be some dips and corrections along the way.
Peters believes a drop to as low as $14,000 or $13,000 is possible but unlikely, and following the breach of the 2017 highs above $20,000 this level could act as support if a retracement occurs.
Some investors are taking the opportunity offered by this week’s rises to take profits, with as many as 27% more bitcoin positions closed than opened on December 16th, for example.
As such, the scenario whereby those who bought at lower prices might decide to monetize their gains immediately remains plausible in the short term.
However, a number of investors are acknowledging that despite this week’s rapid price increase, bitcoin’s true potential may be revealed over the long term, perhaps leading them to hold bitcoin in their portfolios for months, if not years. According to Peters, this idea could become even more consolidated over the course of 2021.
Bitcoin has caught the attention of the world in recent days thanks to its rapid and powerful rise in value, hitting new all-time highs around the $23,000 level, where it currently stands.
Bitcoin well over $25,000
This is a major milestone, which has been in the pipeline for nearly three years and could mark the start of an upward spiral which, according to Peters, could take the price to $70,000 or even $90,000 by Christmas next year.
In fact, demand continues to outstrip supply, and institutional investors continue to seek greater exposure to bitcoin to hedge against inflation. These two factors have helped keep the price above $20,000, and if this trend continues in the months ahead, prices could rise even higher.
