“Moon” is a catchcry used by the Bitcoin community to reflect the belief that the cryptocurrency has the potential to achieve dramatic, exponential growth.
“The whole existence of Bitcoin has been characterised by unthinkable rallies followed by painful corrections, the type of pattern that sustains a long term trend,” Citibank’s global head of CitiFX Technicals Tom Fitzpatrick wrote.
Mr Fitzpatrick guided his Wall Street investment clients to a chart which showed three Bitcoin bull runs over the last decade.
“Are we on the cusp of another such structural development?” he asked.
Mr Fitzpatrick then wondered if an impending run could “potentially peak in December 2021, at the high of the channel, suggesting a move as high as $318,000”.
“Time will tell if we end up seeing such lofty levels but the backdrop and the price action we are looking at clearly suggest the potential for a major move higher nonetheless in the next 12-24 months.”
In March, one Bitcoin was worth just over US$4800.
Explained: What is Bitcoin?
1. Bitcoin is a form of online cryptocurrency that allows money to be transferred electronically. It’s decentralised, which means no-one regulates or controls it except for market demand.
2. It was created by a group (or a single person) of programmers under the pseudonym “Satoshi Nakamoto” in 2009.
3. Bitcoins are “mined” by computers that solve incredibly complex mathematical equations. Like coal or oil, there is a limited number of Bitcoins available to be mined, estimated to be in the ballpark of 21 million.
4. You cannot mine Bitcoin on your home computer, it requires specialised programs and hardware that have increased the difficulty of mining a Bitcoin.
5. Bitcoin experienced a dramatic explosion in value in late 2017, before it experienced one of the most catastrophic value crashes ever seen in currency.