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Bitcoin’s recent price drop below $94,000 has not deterred optimism among experts. Top analyst Lark Davis explains why the crypto bull run could continue into 2025, with Bitcoin surpassing $100,000.
The Crypto Market Faces Turbulence Amid Federal Reserve Rate Cuts
Although the cryptocurrency market as a whole experienced a precipitous decline following the December 18th Federal Open Market Committee (FOMC) meeting, investor and analyst Lark Davis claims that Bitcoin and the market as a whole are still showing strong momentum, suggesting that the crypto bull run has not yet reached its peak, Coingape shares.
As predicted, the US Federal Reserve slashed interest rates by 25 basis points (bps). However, the actual number of cuts in 2025 was lower than anticipated.
After falling below $94,000 and losing almost 5%, Bitcoin showed little evidence of regaining its previous value. Losses for other altcoins were in the double digits.
Bitcoin Price Trends Reflect Past Bull Run Patterns
According to investor and analyst Lark Davis, the market dynamics in December 2020 are similar to Bitcoin's recent 13% slump after a big Q4 surge.
Prior to exploding from $17,000 to $41,000—a gain of 136%—in just 23 days, Bitcoin had a 12% fall following a 77% increase in October and November. The crypto bull run is far from over, according to Davis, who warns that another 10-15% drop is possible but stresses that Bitcoin and the wider crypto market still have tremendous momentum.
In his most recent podcast, Davis debunked the notion that Bitcoin's value will eventually reach $100,000 and even tossed aside the idea that the current cycle is nearing its conclusion.
RSI and Historical Data Highlight Bullish Potential
According to Davis, who used a plethora of technical indications and trends in Bitcoin's history to support his claim, the cryptocurrency is gaining steam and will soon break through the psychological $100,000 barrier to reach new all-time highs.
Looking at Bitcoin's monthly RSI was Davis's first step in the research. In the past, when the RSI reaches or above 90, it marks the peak of Bitcoin's cycle. Both the 2017 and 2021 cycles' maxima occurred at the same time as the general crypto bull run and the market's euphoria.
The Relative Strength Index (RSI) for Bitcoin is now low, hovering around 75–76, compared to its all-time highs. Just this, he continued, might show that the market has plenty of gas left. Davis drew parallels between the current phase and previous cycles, noting that larger price rallies followed initial peaks; it is possible that Bitcoin may follow this pattern in the months to come.
On-Chain Metrics Suggest Bitcoin Remains Undervalued
It appears that Davis's optimistic prediction is validated by the Net Unrealized Profit/Loss chart. Affirmation, elation, and greed are the three extremes that this indicator uses to classify market emotion. Rather than the "euphoria" zone that typically accompanies market peaks, Bitcoin is currently located in the "belief" zone.
Another trustworthy on-chain indicator that finds Bitcoin's value to be much below its prior peaks is the MVRV Z-score. According to Davis's prediction, the cryptocurrency market is still in its early stages and will likely experience a bull run that surpasses past cycle highs.
Fibonacci Levels and Whale Activity Shape Bitcoin’s Future
The 1.618 Fibonacci retracement level, which Davis highlighted, is a crucial milestone for Bitcoin's price movement. This technical goal, which also has psychological weight, was directly on top of the recent opposition at the $100,000 level.
Despite the fact that no crypto bull run is currently underway, Davis dismissed the current situation as merely the beginning of Bitcoin's ascent. According to him, the big trend is still going upwards, but there is momentary resistance because whales intentionally place sell orders at round figures, like $100,000.
Using past cycles as a guide, the investor predicted that Bitcoin's price may reach its all-time high of $250,000 in March or April of 2025. The Pi Cycle Top Indicator's closing gap was one of the chart patterns that he used to make his prediction.
Since the cycle is expected to continue into the second half of 2024, traders should exercise caution while maintaining an optimistic outlook, according to Davis, who cautions about the extremely unpredictable nature of the markets. With a loss of 1.77 percent, the price of Bitcoin was $96,924 as of this writing.
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