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Bitcoin Price Breaks $7.3K But Analyst Sees $13.8K Soon

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Bitcoin price has been rallying on Tuesday, but that’s only the beginning, according to a market analyst. His technical analysis suggests that the cryptocurrency might update the 12-month high by June.


Bitcoin Price Rally Will Get Steeper

Bitcoin almost touched $7,500 earlier today, updating the highest level since March 12. On that day, the crypto market crashed, with Bitcoin breaking below $4,000 to the lowest level in a year. The largest cryptocurrency is about to double its value from March low, but it can go further than that.

A crypto trader shared his view on Twitter, predicting that Bitcoin price might touch $13,800 by the end of June. However, he stressed that it’s impossible to accurately foresee BTC’s price, which is true.

According to his technical analysis, Bitcoin will initially consolidate above $9,100 by the end of this month. While this is plausible, the cryptocurrency has to go through a small test in the coming hours, as it has just formed a double top. The latter is a bearish pattern that often precedes a trend reversal.

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If the leading cryptoasset manages to break above $7,500, it’s fair to say that $9,000 will be the next strong resistance test. At the beginning of March, Bitcoin price started to suddenly crash specifically from that level, following the stock market collapse amid the coronavirus panic.

There Are Enough Fundamentals to Support Bullish Stance

Besides the bullish reasons explained by technical analysis, Bitcoin has even more support from the fundamental side. First, stock markets returned to growth amid hopes that the pandemic has just reached a peak in Europe, as Italy, Spain and the UK reported fewer new cases.

Also, the Fed has pumped trillions into the foreign exchange market, buying government and corporate bonds to support the economy. This excess of cash will be reflected in the BTC price sooner or later.

Finally, an aggressive bullish rally could trigger the FOMO effect, which could send Bitcoin to new 12-month highs.

Do you think Bitcoin has the potential to update the 12-month peak? Share your thoughts in the comments section!


Image via Shutterstock, Twitter:@BTC_JackSparrow , BTC/USD Charts by TradingView





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PlanB feeling ‘uneasy’ as 41% of his followers tip $100K BTC won’t happen this year

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PlanB, the brainchild behind the Bitcoin stock-to-flow model, has revealed he is feeling “uneasy” about his renowned price predictions due to the recent downtrend in markets.

The stock-to-flow (S2F) model, which has predicted BTC prices with some degree of accuracy over the past two years, has been called into question by some of his followers in a recent Twitter poll.

The anonymous analyst surveyed his followers on June 21 asking them what price they thought BTC would reach by the end of the year. He used the results to compare them to a similar survey in March when market sentiment was overwhelmingly bullish.

Of the 124,595 respondents to the latest poll, 41% thought that BTC prices would remain below $100K by the end of the year, which would invalidate the S2F model. That’s two and a half times the 16% in the previous poll who thought the lazer eyes crowd would be disappointed this year.

PlanB who originally published the price predictor in March 2019, pinned a message admitting that even he feels a little “uneasy” when BTC prices deviate from the model. However, the analyst noted that the model had managed to hold previously in March 2019, again in March 2020 when the pandemic caused a global market meltdown, and once more in September 2020.

Preston Pysh, the founder of The Investors Podcast Network, commented that it was difficult for a model to account for a blizzard of bad news that has accelerated the market downturn.

“You mean your model doesn’t account for 40%+ of mining rigs getting banned & forced to turn-off & relocate to various parts of the world…and with no forward notice to companies/entitles for the extraordinary expense to their heavily denominated BTC treasuries/retained earnings.”

The model is a calculation of a ratio based on the existing supply of Bitcoin against how much is entering circulation. The scarcer the asset becomes due to the four-year halving cycles the higher the price. PlanB’s model predicts an average price of $288K over the next three years.

Related: $288K BTC price ‘still in play’ says PlanB as Bloomberg champions Bitcoin halving

At the time of writing, Bitcoin had gained 2.9% over the past 24 hours to trade at $34,450 according to CoinGecko. The asset is currently 45% down from its all-time high of $64,800 on April 14.





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Bitcoin in uptrend but BTC may never beat gold’s $10T market cap — ex-NYSE head

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Bitcoin (BTC) is on a “lower left to upper right trend” and its volatility should not scare investors, the former head of the New York Stock Exchange says.

In an interview with CNBC on June 23, Thomas Farley revealed long-term convictions about Bitcoin and dismissed concerns over BTC price losses.

Bitcoin: Going up, but not “up only”

Coming a day after CNBC pundit Jim Cramer admitted that he sold his Bitcoin stash, suggesting that BTC/USD was going as low as $10,000, Farley provided some much-needed mainstream bullishness.

“With respect to the recent price moves, I’m kind of sanguine about them — Bitcoin’s a very volatile asset class, in part because it’s a new asset class,” he told the network.

“I have no doubt it’ll go up, it’ll go down over the long term — I still think it’s a lower left to upper right trend and I think we’re going to see that play out over five years.”

With mining upheaval coming from China still on everyone’s lips, popular mainstream criticism of Bitcoin’s energy usage was also swiftly cast aside as a temporary issue.

“I think this kerfuffle is an interesting conversation, but by and large I think it’ll be resolved because I think the blockchain at its core adds to its efficiency and in fact will add to energy efficiency over time,” he continued.

Less convinced on gold. vs. Bitcoin

When it comes to Bitcoin as “digital gold,” however, Farley was more conservative in his predictions.

Now firmly beneath a trillion-dollar market cap, Bitcoin must transform in order to take on store-of-value safe-havens.

Related: Joining the ranks: Bitcoin’s correlation with gold and stocks is growing

“I think the upper bound for now is gold, which is about a $10 trillion market cap,” he added.

“In order for Bitcoin to one day exceed gold, it’ll have to be more of an accepted form of currency — I’m not sure, frankly, if it ever gets there.”

Proponents argue that Bitcoin, by its very nature, faces just a matter of time before eclipsing gold thanks to the latter’s ultimately infinite supply and inability to beat Bitcoin in all aspects of “money.”

The precious metal saw a major sell-off last week after comments on policy from the United States Federal Reserve.

To beat gold, Bitcoin would need to trade at more than $533,000 with the current supply.