Double Bottom Confirmed: Fidelity Sees Bitcoin Price Rising to $100,000

Bitcoin (BTC) is holding up remarkably well, while gold has plummeted over the past week due to rising U.S. interest rates. The Bitcoin price has already risen by more than 40 percent this quarter, outperforming gold, silver, and the S&P 500.

According to Jurrien Timmer, director of global macro at Fidelity Investments, the rally could continue even further. He sees an important technical pattern that could pave the way for a Bitcoin price of $100,000.

Gold lost nearly 4 percent on Monday after U.S. long-term interest rates rose to their highest level since 2007.

Bitcoin also took a hit but held up considerably better. The Bitcoin price fell about one percent on Monday and briefly dipped to $82,500. This was followed by a recovery toward $84,000.

Over the entire quarter, the difference becomes even clearer. Bitcoin has risen by more than 40 percent, outperforming gold, the S&P 500, and other major asset classes.

According to Timmer, Bitcoin also remains strong on the chart. Despite the slowing momentum, the price remains above $80,000 and above the previous highs from May. It is precisely this technical development, he says, that points to a much higher price level.

According to Timmer, the technical chart in particular offers reason for optimism. The Bitcoin price has formed what is known as a double bottom pattern. In this pattern, the price drops twice to roughly the same level, creating a W-shape on the chart.

In this case, according to Timmer, the two lows were around $60,033 and $57,742. Between these two drops, Bitcoin rose to about $82,800. That level represented the pattern’s key resistance.

Now that Bitcoin has broken above that level, the pattern has been confirmed, according to Timmer.

“Bitcoin looks particularly interesting here as it challenges the key resistance around $80,000. A breakout confirms a double bottom with a price target of $100,000,” Timmer wrote.

From a Bitcoin price of around $84,000, that represents a potential increase of about 19 percent.

A technical price target is not a guarantee. If Bitcoin falls back below the resistance level it has broken through, the positive pattern will lose momentum.