Analyst Casts Doubt on Bitcoin Price Forecasts Over 100K as Index Shows It Has Already Reached Record Highs
Crypto analyst Rus has provided insights into the current trend of Bitcoin and has examined ambitious price targets for the leading cryptocurrency. One intriguing observation made was the comparison of Bitcoin’s price to global M2 liquidity, revealing that we are currently at record highs.
Despite this, it was noted that global M2 liquidity is expected to rise further due to continuous fiat currency printing by countries worldwide. Unlike cryptocurrencies, fiat currencies cannot be burned, leading to persistent inflation as countries have no choice but to keep printing money. The increase in liquidity, particularly during periods of significant upticks, tends to result in asset surges like Bitcoin, benefiting the entire cryptocurrency market.
Forecasts indicate a resurgence in money printing to stimulate the economy through measures like liquidity injections and interest rate cuts. As a result, Bitcoin is poised to see substantial gains from these actions. While facing resistance at $73,000, it was suggested that a high number of short positions could be impeding a breakthrough.
Nonetheless, reaching important targets like $91,000 for Bitcoin is not out of reach. Analysts utilize various indicators such as Fibonacci levels, previous price movements, and fractal patterns to predict these milestones. The consensus is that it is only a matter of time before Bitcoin hits these levels.
Another analyst proposed a target of $136,000, citing a broadening wedge pattern. Bitcoin’s historical performance, particularly the seven consecutive months of growth from September to March, suggests the potential for significant price increases.
Although April saw a slight decline, May showed positive growth, and with June underway, there is optimism for further expansion. Considering Bitcoin’s past trajectory, where it surged from $25,000 to $73,000 in a short period, reaching $136,000 by the year’s end seems plausible. Patterns and fractal analyses also indicate similarities with Bitcoin’s movement in 2017, although not necessarily with the same magnitude.
In conclusion, the potential for Bitcoin to reach $100,000 and beyond is becoming clearer, with scenarios of brief corrections anticipated before a major breakthrough in price.