According to an analysis by a pseudonymous analyst known as TechDev, the price of Bitcoin (BTC) could potentially double from its current value of $69,000 within the next three months. TechDev, who has a following of 440,000 on social media platform X, pointed out that Bitcoin had closed two consecutive months above the upper Bollinger Band, a widely-used momentum indicator. Historical data shows that whenever Bitcoin has achieved this in the past, its price has doubled within the following three months. Based on this pattern, Bitcoin could reach approximately $140,000 by July.
Bollinger Bands are a tool used in technical analysis to measure the momentum and volatility of an asset within a specific range. When prices touch the upper band, it is often seen as an overbought signal, while touching the lower band indicates an oversold asset. However, it is important to note that Bollinger Bands are just one of many technical indicators available to analysts. According to Investopedia, they are more reactive than predictive, as they rely on past price action and volatility data. Additionally, these metrics can vary significantly during peak bull and bear markets.
Anthony Scaramucci, the CEO of SkyBridge Capital, appeared on CNBC on April 6 and predicted that Bitcoin could potentially reach as high as $170,000 during this cycle. He also mentioned that Bitcoin could eventually trade at around half the total value of the global gold market. Scaramucci emphasized that this growth would not happen overnight and there would be significant volatility along the way. Currently, Bitcoin’s market capitalization stands at $1.35 trillion, while gold’s total value is $15.8 trillion. In order for Bitcoin to trade at half the value of gold, its market cap would need to grow approximately six times from its current level, resulting in a price of roughly $400,000 per BTC.
Scaramucci described the recently approved spot Bitcoin ETFs as “selling machines” and argued that these products would continue to drive retail and institutional demand for the cryptocurrency. The spot Bitcoin ETFs have already seen over $12 billion worth of net inflows into the ten products (excluding Grayscale). In contrast, when the Gold ETF (GLD) was launched in November 2004, it took nearly one year to accumulate $10 billion in inflows.
Similar to other market commentators, Scaramucci believes that the upcoming Bitcoin halving, scheduled for April 20, will act as a major catalyst for short-term price appreciation.
Ripple CEO Brad Garlinghouse also expressed optimism about the crypto sector, predicting that its overall value would double by the end of this year. In an interview with CNBC, Garlinghouse stated that he expects the entire crypto sector to be worth $5 trillion by the end of 2022. He attributed this growth to factors such as the upcoming halving, regulatory developments, and the increasing popularity of Bitcoin ETFs, all of which are expected to drive wider adoption of cryptocurrencies.
In summary, analysts and industry leaders are optimistic about the future of Bitcoin and the wider crypto sector. While there may be volatility along the way, many believe that Bitcoin has the potential to continue its upward trajectory and reach new price milestones in the coming months.