Bitcoin hasn’t reached its previous record highs yet, but some experts are becoming optimistic due to an unusual pattern in its charts. By examining the data on X, these analysts noticed that Bitcoin ended the last two months with closing prices above the upper limit of its Bollinger Band in the monthly chart.
A Rare Bollinger Band Signal Prints: BTC To $140,000?
Based on historical data, an analyst pointed out that when Bitcoin ends two successive months with closing prices above the monthly chart’s upper Bollinger Band, the cryptocurrency typically experiences a price increase that doubles its value within the following three months. If this trend continues, Bitcoin could reach a price of over $140,000 by July 2024 – approximately three months post-Bitcoin halving event.
Bitcoin’s price currently hovers below its March 2024 all-time high of $73,800. Following several weeks of decreasing prices, a notable rebound occurred on April 8, potentially indicating a return of buyers. The digital currency is now being traded above $71,800, successfully surpassing the crucial support level around $72,000 at the time of writing.
Although Bitcoin’s price has surged recently, it’s uncertain if this upward trend will persist. It’s important to mention that historically, Bitcoin prices have decreased prior to the Halving event, which is approaching soon. Prices could potentially drop as low as $20,000. After reaching a high of $73,800, Bitcoin experienced a decline and is now hovering around $60,000.
If the price closes above $74,000 with renewed energy, there is a possibility for further growth in the coming days, potentially reaching $100,000 within the next few weeks.
An alternative perspective holds that Bitcoin may reach a price tag of $140,000 over the next month, given its historical price behavior. Following its breakthrough above the previous record high of $20,000 set in 2017, Bitcoin experienced a remarkable surge, peaking at approximately $70,000 – nearly tripling its value.
At present, the price of Bitcoin that investors are closely watching is $74,000 and its record high. Should this threshold be broken, as previously occurred in late 2020, it would increase the chances of Bitcoin reaching or even doubling to $140,000.
Will Halving, Macroeconomic Factors, And Spot ETFs Drive Prices?
The positive attitude towards Bitcoin’s price increase may persist for some time. Factors contributing to this include investors’ growing interest in Bitcoin ETFs, which have already attracted billions in investments. This influx of capital has boosted demand and prices. Additionally, the upcoming Halving event could fuel even more demand, potentially causing prices to climb further over the next few months.
Analysts are considering factors beyond Bitcoin’s influence when examining the market. In particular, they’re focusing on events in the US, such as the possibility that the Federal Reserve (Fed) may not reduce interest rates as much as expected. This is due to improving labor markets and decreasing inflation.
If the Federal Reserve lowers interest rates contrary to their previous aggressive stance, Bitcoin and other secure investments might experience a surge in value.
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2024-04-08 22:16