Bitcoin (BTC) Price: Wall Street Veteran Calls for 41% Rally Before Year-End

TLDR

Bitcoin’s unrealized profits have crossed the +2 standard deviation threshold, historically indicating market euphoria followed by corrections Realized profits spiked above $500 million per hour three times in 48 hours as large holders cash out Tom Lee predicts Bitcoin could reach $150,000-$250,000 this year and $1.2-3 million long-term Bitcoin faces resistance at $106,265 while maintaining support above $105,000 95% of Bitcoin has been mined but 95% of the world doesn’t own Bitcoin, creating supply-demand imbalance

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Bitcoin has entered a critical phase as market indicators flash warning signs of potential price volatility ahead. The cryptocurrency recently crossed a historic threshold that has historically preceded market corrections.

Bitcoin (BTC) Price

Bitcoin’s unrealized profits have surged above the +2 standard deviation level, a metric that signals market euphoria. This threshold crossing has historically been followed by short-term price surges and subsequent sharp corrections.

Source: Glassnode

Investors who purchased Bitcoin at lower prices may begin selling their positions to secure gains. This pattern of profit-taking often triggers downward pressure on the cryptocurrency’s price.

The market is already showing signs of increased selling activity. Realized profits have spiked to over $500 million per hour on three separate occasions within the past 48 hours.

This surge in realized profits indicates that large holders are actively cashing out their positions. The timing coincides with Bitcoin’s period of slower growth, suggesting these holders are securing their gains rather than waiting for further upside.

Source: Glassnode

Technical Analysis Points to Key Levels

Bitcoin currently trades at approximately $105,900, maintaining its position above the critical $105,000 support level. The cryptocurrency faces immediate resistance at $106,265.

Source: TradingView

The Relative Strength Index remains above the neutral 50.0 mark, indicating that bullish momentum persists despite the profit-taking concerns. This technical indicator suggests room for further upward movement.

A successful breach of the $106,265 resistance level could open the path toward $108,000. Market conditions will play a crucial role in determining whether Bitcoin can sustain this upward trajectory.

However, failure to hold above $105,000 support could lead to a decline toward $102,734 or lower. Such a move would invalidate the current bullish outlook and potentially accelerate selling pressure.

Long-Term Outlook Remains Optimistic

Despite short-term concerns, Wall Street analyst Tom Lee maintains an optimistic long-term view on Bitcoin. The Fundstrat CIO expects Bitcoin to surge by at least 41% from current levels before the year ends.

Lee attributes his bullish stance to expanding global liquidity and expectations of a dovish Federal Reserve policy next year. These macroeconomic factors serve as tailwinds for Bitcoin’s price performance.

His year-end target ranges from $150,000 to potentially $250,000, representing substantial upside from current levels. Lee’s analysis focuses on the fundamental supply-demand dynamics affecting Bitcoin.

According to Lee’s research, 95% of all Bitcoin has been mined, yet 95% of the world’s population doesn’t own Bitcoin. This statistic highlights a massive supply-demand imbalance that could drive future price appreciation.

Over an extended timeframe, Lee believes Bitcoin should match or exceed gold’s market capitalization. Above-ground gold represents approximately $23 trillion in value, which would translate to $1.2 million per Bitcoin.

Lee’s most optimistic long-term projection sees Bitcoin reaching $2-3 million or higher, based on his assessment that Bitcoin offers more value than gold.

Bitcoin currently maintains its position above key support levels while facing immediate resistance, with realized profits hitting $500 million per hour three times in the past 48 hours.

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