Bitcoin has chance to reach enormous price level, according to this analysis
Bitcoin (BTC) continues to be the gold standard, both metaphorically and, as some analysts suggest, soon in a literal sense as well. The Glassnode cofounder and renowned analyst recently posed a thought-provoking question: will BTC reach 98X the price of gold?
The BTC-gold ratio, a metric that compares the price of Bitcoin to that of gold, appears poised for a significant leap. Key indicators support this bullish sentiment. The RSI (Relative Strength Index) is not only on the rise but has surpassed the 50 mark, indicating potential bullish momentum. Additionally, the MACD (Moving Average Convergence Divergence) has entered a bullish crossover and continues its upward trajectory.
Using Fibonacci extensions, the analyst predicts potential extension levels that could see gold priced around $1,200 and Bitcoin soaring to approximately $120K. Such predictions align with forecasts made by Henrik Zeberg.
At the time of writing, Bitcoin is trading at approximately $27,715.40. While this is a far cry from the predicted $120K, the current market dynamics and the aforementioned technical indicators suggest that such a surge is not entirely out of the realm of possibility.
However, it is essential to approach such predictions with a degree of skepticism. While technical indicators provide valuable insights, they are not foolproof. The crypto market is notoriously volatile, influenced by a myriad of factors ranging from regulatory changes, technological advancements, macroeconomic factors and even tweets from influential personalities.
Moreover, the comparison with gold, a tangible asset with millennia of history as a store of value, is intriguing. Gold’s price is influenced by supply and demand dynamics, geopolitical tensions, inflation rates and central bank policies, among other factors. Bitcoin, on the other hand, is a digital asset, decentralized, and operates on a technology that is just over a decade old.
