Bitcoin may reach $110,000 in next acceleration phase

Recent research from Fidelity Digital Assets suggests Bitcoin's (CRYPTO:BTC) current market cycle has not yet reached its peak, indicating the potential for another surge in its price.

Analyst Zack Wainwright highlighted that Bitcoin's "acceleration phases" are marked by high volatility and significant profit opportunities.

He compared the current cycle to previous ones, noting that prior peaks occurred on days 244, 261, and 280 of their respective cycles.

As of March 3, the current phase had lasted 232 days, suggesting it could extend further before a corrective period begins.

Despite a year-to-date loss of 11.44% and a decline of nearly 25% from its all-time high, Bitcoin's performance aligns with historical trends following acceleration phases.

Wainwright emphasised that these drawdowns are consistent with past market cycles.

Institutional interest in Bitcoin remains strong.

On March 31, MicroStrategy CEO Michael Saylor announced the company had acquired 22,048 BTC for $1.92 billion at an average price of $86,969 per Bitcoin.

Similarly, Marathon Digital Holdings revealed plans to raise $2 billion through stock sales to purchase more Bitcoin.

Japanese firm Metaplanet issued bonds worth 2 billion yen ($13.3 million) for Bitcoin acquisitions, while GameStop announced a $1.3 billion convertible notes offering with potential allocations for cryptocurrency purchases.

These developments underscore a growing trend among corporations treating Bitcoin as a reserve asset.

Institutions appear to adopt a price-agnostic approach to accumulation, reflecting long-term confidence in its value.

Wainwright also pointed to a key metric: the number of days within a rolling 60-day period when Bitcoin hits new all-time highs.

Historically, Bitcoin experiences two major surges during acceleration phases.

If this pattern holds, the next rally could push prices beyond $110,000.

While predicting exact outcomes remains challenging, Fidelity's research emphasises that previous cycles provide valuable insights into potential future movements.

As institutional adoption grows and market dynamics evolve, Bitcoin's trajectory continues to attract significant attention from investors and analysts alike.

At the time of reporting, the Bitcoin (BTC) price was $83,404.52.