TL;DR
- Bitcoin (BTC) has surged past $80,000, with analysts eyeing further peaks potentially reaching $220,000.
- Despite the optimism, some metrics like the high RSI suggest the asset’s price may face a short-term correction, while some investors caution about a minor chance of a severe downturn.
Is There Room for More Growth?
Bitcoin (BTC) has been on a tear in the past week, with its price soaring by 20% and hitting a new all-time high of over $82,000.
The surge could be attributed to Donald Trump’s win in the US presidential elections. Recall that during his campaign, the Republican presented himself as the right choice for those in favor of the asset class, promising to let the industry (more specifically BTC) thrive.
The bull run has triggered massive enthusiasm across the community, with numerous analysts suggesting that the rally is far from being over.
The X user Mikybull Crypto assumed that the “next area of interest” is a new peak of $93,000. This could be followed by a potential consolidation and a consequent fresh surge to as high as $121,000. Bluntz was also bullish, forecasting a price expansion to the $130K-$150K range.
Gert van Lagen went even further, setting a target of over $220,000. He argued that BTC’s valuation has “broken parabolically” out of a particular phase known as Base 4 and has now moved to “wave 5.”
The Opposite Scenario
BTC’s rally has been more than impressive, but some believe a devastating crash remains a plausible option. The popular investor using the moniker Jason praised BTC’s network for its “brilliance” since no nation-state or hacker collective has figured out a way to compromise it.
He presented himself as a BTC investor who jumped on the bandwagon when the price was $100-$200 and “never sold.” However, Jason assumed there is still a minor chance (less than 5%) for the valuation to crash to zero. “Do your own financial underwriting, obviously,” he concluded.
Some on-chain metrics suggest that BTC may indeed experience a pullback in the short term. The Relative Strength Index (RSI), which measures the change and speed of price movements, has skyrocketed to the bearish ratio of 80.
Readings above 70 typically signal that the asset is overbought and could be due for correction. On the other hand, anything below 30 is seen as a buying opportunity.
Read the full article here
