After a moment of falling after China’s announcements and with many claiming that the currency would “fall for good”, Bitcoin has regained momentum and now the narrative is certainly much more positive, with analysts betting on $100K until the end of the year or even longer. But does digital currency really have the strength to reach these values?
Market analysts are betting on a very positive sentiment towards the cryptomarket and especially towards Bitcoin. They are heralding the start of a second bull run for 2021 that could push cryptocurrency into the hundreds of thousands, one of the leading indicators for this prediction is Bitcoin’s Relative Strength Index.
Several respected analysts point out that Bitcoin could go through a four-year cycle relative to its price, a cycle that can also be seen in the Bitcoin Relative Strength Index (RSI), which peaks slightly lower than the last cycle , while the price “fires again”.
On a graph you can see that during the long-term bull movement between 2013 and 2021 it is inversely proportional to RIS peaks in the same periods. In 2013 the RSI was higher than during the 2017 and 2021 highs.
If Bitcoin’s history is an indication for the future (which happens sometimes) this movement may indeed be a sign that we are entering a new high moment that could reach values in the hundreds of thousands of dollars.
Other analysts also see on the chart other signs that we will have a good time in the future, with some betting on a value of $200,000 to $300,000, with that price value looking “too programmed.”
A report by Glassnode, one of the most important blockchain analytics entities, shows that Bitcoin continues to mature on the path of adoption by large companies and with large transactions dominating the network.
In analyzing volume by transaction size, Glassnode noted that transactions above $10 million continue to dominate the network. Large-scale transactions have returned to a maximum between $13.6 billion to $16.8 billion a day.
“The increase in dominance of large transactions shows an increase in the maturity of Bitcoin as a macro-scale asset with growing interest from wealthy individuals, trading desks and institutions,” said Glassnode.
Even PlanB, one of the most important bitcoin analysts, spoke about the possibilities for a rise, showing that he was even more positive than some.
Talking about the selling wall at around US$ 250,000, PlanB believes that bitcoin will not only reach that amount, but that the wall will be taken “forward”.
“Selling walls are pure scare tactics, to scare you not to buy. See them remove the sale wall and place it at a higher value as the price gets closer to the wall.”
ICYMI: sell walls are pure scare tactics, to scare you out of buying. Watch them remove the sell wall and place it higher, as soon as price approaches the sell wall. If they really wanted to sell (large amounts) they would do it stealth mode, not signaling their position. pic.twitter.com/CGgCgO5FoJ— PlanB (@100trillionUSD) October 5, 2021
PlanB has always defended Bitcoin at $100,000 by the end of 2021, but he certainly believes the price will go beyond that mark.