Bitcoin is not overbought and could reach $75,000 before the current bull market ends, research from Kraken says

Bitcoin is not overbought and could reach $75,000 before the current bull market ends, research from Kraken says

Bitcoin could gain much higher before the current bull market ends based on historical price movements, says a Kraken Intelligence market report published Friday.

Although bitcoin is quickly approaching resistance, it remains several tens of thousands of dollars away from entering into "overbought" territory, Kraken said. If bitcoin were to surpass $75,000 in the next few months, historical price action suggests bitcoin would then be close to the top of the cycle. 

The cryptocurrency has pulled back from its all-time high above $58,000 on February 21, but it still finished the month 37% higher. The coin is up 62% year-to-date as of Friday as it hovers just below $48,000.According to Kraken, bitcoin is now trending in a manner most similar to the first quarter of 2013, bitcoin's best first quarter on record. If the trend continues, the first quarter of 2021 "could be a historic quarter with a relatively outsized return." "By plotting a logarithmic growth curve that connects BTC's prior market cycle tops (resistance) and bottoms (support) and by making assumptions about how severe BTC will correct upon hitting a cycle high, one will find that BTC likely has plenty of upside before entering a bear market," the report says. 

The report