Analyst predicts Bitcoin's potential surge to $135K over the next hundred days, given the observed decline in the VIX index.
Let's dive into the current Bitcoin scene and uncover some insights on where it might head next.
Bitcoin's Consolidation and Price Predictions 📈
Bitcoin has been hovering around the $105K mark for the past four days, building momentum for either an aggressive rally or a potential pullback. Analysts are making calls for prices ranging from $135K to $200K in the next 3-6 months, thanks to an optimistic macro outlook.
On May 12th, BTC suffered a 4% dip from $105K to $100.7K, a usual 'sell-the-news' event following the US-China trade deal. However, it quickly bounced back on May 13th after a modest 0.2% month-on-month April CPI inflation print at 2.3%, lower than the anticipated 2.4%, boosting Fed rate cut expectations from Q3 onwards.
Macro Environment and Bitcoin's Growth 📉
In an email statement, 21Shares crypto investment specialist David Hernandez noted that if the easing inflation and nation-state adoption trends persist, $200,000 price targets by year-end could become increasingly realistic. Meanwhile, Timothy Peterson, a BTC network analyst, pointed out that lower inflation and the US-China trade deal created a 'perfect setup' for a 'risk-on' rally.
On the flip side, a report by crypto research firm Swissblock predicts a potential correction at $104K-$106K before a rebound to a record level. However, controversial valuation metric True MVRV suggests there is still room for growth before Bitcoin hits a potential local peak.
What's Next? 🔮
While some analysts are optimistic about Bitcoin's chances of hitting a new ATH, it may not be a smooth ride. The path to a new ATH could witness a dip below $100K. Still, the positive macro environment could fuel further risk-on sentiment, pushing Bitcoin higher.
On the options market, traders have positioned themselves for both scenarios, with $95K put options (bearish bets) being the most popular in the last 24 hours, followed by calls for $105K and $115K (bullish bets).
So, buckle up as we head towards an exciting ride in the Bitcoin market! 🚀💸
[1] Bitwise: https://bitwiseinvestments.com/insights/2021-bitcoin-year-in-review/[2] Google Search Data: https://trends.google.com/trends/explore?geo=US&q=bitcoin[3] AllianceBernstein: https://www.alliancebernstein.com/en/%2Finsights/outlook/2022-investment-outlook/page/equity-market-forecast[4] Cointelegraph: https://cointelegraph.com/news/market-analysis-btc-struggles-to-reach-new-ah-as-key-resistance-levels-loom-ahead
- Despite Bitcoin's recent consolidation around the $105K mark, analysts are bullish about its potential price range, predicting a possible rise to $135K to $200K in the next 3-6 months due to an optimistic macroeconomic outlook.
- The crypto research firm Swissblock forecasts a potential correction at $104K-$106K before a rebound to a new record level, while controversial valuation metric True MVRV suggests there is still room for growth before Bitcoin hits a potential local peak.
- In the options market, traders have positioned themselves for both a potential pullback and an aggressive rally, with $95K put options (bearish bets) being the most popular in the last 24 hours, followed by calls for $105K and $115K (bullish bets).
