Veteran Trader Raises Bitcoin Price Forecast To $200,000 As BTC Surges Past $56,000
By Newton Gitonga – February 27, 2024
Bitcoin, the world’s largest cryptocurrency by market capitalization, has been on a tear this week, surpassing $56,000 for the first time since December 2021. The digital asset started the week on a high note, with its significant uptick on Monday continuing into Tuesday. This rise came despite a decline in the S&P 500, indicating that Bitcoin may be shedding its reliance on traditional equities markets.
The rise in Bitcoin’s price resulted in multiple short liquidations, with data from Coinglass showing that in the past 24 hours, 81,388 traders were liquidated, resulting in a total of $363 million. Notably, $280 million of these liquidations were for short orders.
Meanwhile, despite some indications that the price may be overstretched, particularly on the RSI indicator, the latest pump has ignited a wave of optimism among experts that Bitcoin could continue to rise.
On Tuesday, veteran trader Peter Brandt wrote on X that the thrust above the upper boundary of the 15-month channel has led him to raise his price forecast for the current bull market cycle, which is scheduled to end in August or September 2025, from $120,000 to $200,000.
However, Brandt also noted that he would use laser eyes on social media as a contrary indicator, stating that “Too many laser eyes will be the KOD” (kill on delivery).
The phrase “laser eyes” refers to the trend of crypto enthusiasts, particularly on Twitter, changing their profile pictures to include laser eyes as a way of expressing their bullish outlook on Bitcoin. Brandt’s statement that he will use this trend as a contrary indicator suggests that an increase in the number of people adopting laser eyes on their social media pictures could be a bearish signal.
Other analysts are also optimistic about Bitcoin’s price rising. Seasoned analyst Gert van Lagen wrote that the current parabolic trajectory of Bitcoin since November 2021 indicates that it is on track to hit $200,000 “soon”, suggesting it may reach those levels even before the April halving.
He also noted that the correlation between Bitcoin and the S&P 500 has been strong since the end of 2021. Bitcoin’s price has surged significantly beyond the previous bear market’s 78.6% Fibonacci retracement level.
Meanwhile, on-chain data suggests that whales have been accumulating Bitcoin. According to data from Cryptoquant, new whales are accumulating Bitcoin and are now sitting on a 38% unrealized profit. The realized price for a 30-day active whale cohort is $40,500, indicating that these whales are holding onto their Bitcoin for the long term.
At press time, BTC was trading at $56,511, reflecting a 10.90% surge in the past 24 hours, according to CoinMarketCap.
DISCLAIMER
The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.
The original article written by Newton Gitonga and posted on ZyCrypto.com.
Article reposted on Markethive by Jeffrey Sloe
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