Standard Chartered Forecasts Bitcoin Will Retest All-Time High

British bank Standard Chartered ($STAN) is forecasting that Bitcoin (CRYPTO: $BTC) will retest its all-time high of $126,000 U.S. by year's end. 

The bullish call comes after Bitcoin rallied 23% over the past week to trade at $77,300 U.S. on Aug. 21. 

Standard Chartered analyst Geoff Kendrick writes in a note to clients that he is upgrading his previous forecast for BTC to reach $100,000 U.S. by year's end.

Kendrick says that a retest of the $126,000 U.S. record high is now more likely.

According to Kendrick, the latest Bitcoin rally has been driven by short liquidations, while inflows into U.S. spot Bitcoin exchange-traded funds (ETFs) could provide another tailwind for crypto.

The combination of forced buying from short sellers and returning ETF demand has helped Bitcoin quickly recover and rise back near $80,000 U.S. in only a few days, notes the analyst.  

Kendrick adds that Bitcoin appears to be firmly out of the $60,000 U.S. to $65,000 U.S. range it had been stuck in over the past few months.

"For the first time this year there is now a risk my end year forecast (of USD100k) is too low," Kendrick wrote in his note.

Kendrick said Bitcoin could move toward its previous record before the end of the year, with the recovery accelerating after Oct. 6, which is the date when BTC hit its record high last year.

Since then, Bitcoin has been caught in a "crypto winter" and its price declined 54% peak-to-trough. BTC hit a low of $58,000 U.S. at the end of June this year. 

Standard Chartered has not formally replaced its $100,000 U.S. year-end forecast with a $126,000 U.S. target. 

Instead, Kendrick described the all-time high as a level that Bitcoin may revisit if the current recovery gathers further momentum.