Bitcoin Price Projection Soars: BTC-Gold Ratio Indicator Proposes $120,000 Price Target
07 October 2023 - 8:00AM
NEWSBTC
Over the past week, Bitcoin price has displayed a notable bullish
momentum. This comes after a prolonged consolidation phase during
which the leading cryptocurrency remained stagnant below the
$27,000 mark for an entire month. However, with the recent breakout
and the resurgence of bullish sentiment in the market,
experts are now predicting a potential surge that could propel
Bitcoin’s price above $30,000. Bitcoin Price Bullish Momentum
Continues Technical analyst Gert Van Lagen highlights a significant
breakout from a long-term descending channel, signifying the end of
a corrective wave and paving the way for a parabolic surge in Wave
5. Gert Van Lagen emphasizes the monumental breakout of a
2.25-year descending channel, marking the end of an expanded flat
corrective wave 4. The channel, determined by the green dots,
has contained the ABC correction of wave 4. With wave five on the
horizon, breaking 10% above the channel, around $30,000, is
expected to trigger a parabolic surge. Related Reading:
Bitcoin News: Here Is When BTC Could Revisit $20,000 One Last Time,
Analyst Says Notably, Gert believes that wave 5, a “blow-off wave,”
may exhibit steep growth, with the final impulse indicating a
significant upward movement. While the potential for further upside
gains is promising, remaining aware of key considerations and
potential invalidation points is crucial. In this context, paying
attention to $13,800 would be essential, as the invalidation point
lies when wave four falls below wave 1. Bitcoin-Gold Ratio
Indicator Prominent figures in the crypto analytics industry, the
co-founders of Glassnode, have expressed their belief in Bitcoin’s
potential to reach six figures. Drawing attention to the BTC-Gold
ratio, they suggest that Bitcoin could rise to approximately 98
times the price of Gold. The BTC-Gold ratio serves as a
critical metric for understanding the relative performance and
value of Bitcoin compared to Gold. Analyzing this ratio, the
Glassnode analysts note several positive indicators suggesting a
Bitcoin price surge. The rising RSI (Relative Strength Index)
and its position above 50 indicate increasing buying pressure and
positive momentum. Additionally, the bullish MACD (Moving Average
Convergence Divergence) crossover and a rising trend reinforce the
bullish sentiment surrounding Bitcoin. Using Fibonacci extensions
provides further insight into potential price levels for Bitcoin.
These extensions, derived from mathematical ratios, are often used
to identify price targets during upward trends. Related
Reading: Is Ethereum’s Staking Boom A Ticking Time Bomb? JPMorgan
Weighs In Based on the analysis, the Fibonacci extensions suggest
that Bitcoin could reach valuation levels around $120,000, while
Gold maintains a price of around $1,200. The Glassnode co-founders’
analysis fuels optimism within the crypto community. Bitcoin’s
potential for six-figure valuations could attract more investors
and solidify its status as a digital store of value. The
predicted surge in Bitcoin’s price would likely have a ripple
effect, generating increased interest and investment in the broader
cryptocurrency market. When writing, BTC is trading at $27,900,
just below the significant psychological level of $28,000. This
level currently represents a crucial threshold for bearish
sentiment towards BTC. BTC must maintain support at the $27,000
level to sustain its bullish momentum. By surpassing the current
resistance line at its current trading level, BTC can reclaim the
$30,000 mark and set its sights on the annual high of
$31,800. This upward movement could position the
cryptocurrency to challenge the 1-year resistance level at $39,000,
with the potential for consolidation above the $40,000 mark.
Featured image from Shutterstock, chart from TradingView.com
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