Bitcoin prices have stabilized around $111,000 after several weeks of volatility, but analysts at TD Cowen predict that Bitcoin prices could reach $141,000 by December.
In a note released on Monday, the company highlighted that the recent crypto market crash and recovery is a testament to the resilience of the broader crypto and Bitcoin ecosystem.
The flash crash earlier this month caused about $19 billion in liquidations, making it the largest single-day event in crypto history. Despite the scale of the decline, TD Cowen noted that most exchanges continued to operate with minimal disruption, demonstrating their ability to absorb market shocks, The Block reported.
The economic downturn was initially spurred by US President Donald Trump’s approval of 100% tariffs on imports from China, causing the overall cryptocurrency market to decline by more than 10%.
While unpopular tokens suffered heavy losses, major digital assets like Bitcoin fared well, with Bitcoin at one point down 15%, but ended the day trading down just 8%.
“This was the largest single-day liquidation in history, and even though open interest was halved across venues, most crypto exchanges operated with little to no downtime,” the memo said.
Global spread of Bitcoin
Analysts at TD Cowen believe this episode has contributed not only to market resilience but also to increased global adoption. In Japan, for example, the number of registered accounts holding digital assets has quadrupled in the past five years to more than 7.9 million.
This surge in adoption has prompted Japan’s Financial Services Agency to reconsider long-standing regulations for banks to invest in digital assets such as Bitcoin.
Bitcoin prices rose to around $111,000 today after falling to the $104,000 range last week as new corporate accumulation and optimism about a possible end to the US government shutdown lifted market sentiment.
Bitcoin closed near its current range in September, but hit an all-time high in early October before the flash crash.
Bitcoin price stuck
According to analysts, major resistance levels for Bitcoin are currently located at $112,000, $115,000, and $117,000, with the bias back to the bulls at $122,000. A convincing break above $1,000 is needed, but support below $105,000 is likely to fail, with stronger levels at $98,000-$96,000.
We may see a slight rebound next week, but failure to sustain $106,900 could open the door for prices below $100,000, especially if the FOMC does not cut rates significantly.
Source: https://bitcoinmagazine.com/markets/bitcoin-price-holds-111000-as-td-cowen-predicts-141000-by-december
