What will be the new all-time high for Bitcoin: crypto-analyst’s view
The current bullish trend is still a long way off, as most crypto investors are not yet willing to take profits on Bitcoin’s rise. That is the conclusion reached by analyst Mitch Klee, who based his forecast on the reading of the so-called RHODL indicator. According to him, the bull run is only 50 percent complete, which means that we have at least another year of rapid Bitcoin price growth ahead. We tell you more about the expert’s point of view.
Note that today Bitcoin is quite far from its new all-time high of $67,000. Specifically, the cryptocurrency is at $60.8 thousand, which is about 9.3 percent lower than the last record from October 20.
Daily chart of Bitcoin exchange rate
That said, other indicators look relatively good. In particular, 2,336,996 BTC out of a total supply of 21 million bitcoins have not moved in over a decade, so they can probably be considered lost. This is good news for today’s BTC holders, who have not lost the private keys to the addresses with their coins. After all, the less cryptocurrency in circulation, the more valuable coins are available.
By the way, that is the logic behind the Binance Smart Chain (BSC) developers, who want to start burning BNB coins on every transaction. Read more about this in a separate article.
Bitcoins that haven’t moved in a decade
The percentage of Bitcoin addresses that are able to sell their cryptocurrency on the plus side is below 95 per cent.
Proportion of Bitcoin addresses in surplus
Consequently, many of them are able to sell their cryptocurrency to the upside, but do not do so in anticipation of further growth. And if some analysts are to be believed, such a thing could indeed happen.
When will Bitcoin stop rising?
Klee’s forecast uses the Realized HODL Ratio (RHODL) indicator created by popular analyst Philip Swift. This indicator is based on the HODL Waves metric, which shows the number of coins with no movement at certain times. Overall, RHODL signals whether an asset is overbought or oversold, reports Cointelegraph. That is, it gives conclusions about the cryptocurrency’s popularity and investors’ willingness to connect with it.
In the screenshot below, the RHODL indicator is overlaid on the Bitcoin price chart. The red colour indicates the overbought zone of the cryptocurrency for the indicator. As you can see, it is only halfway to this area. On a larger scale, RHODL has proven to be a very accurate indicator: just look at how each peak on the BTC chart exactly coincides with the overbought zone.
RHODL indicator
Klee published his thoughts in response to a tweet from Pete Rizzo, the editor of the news publication of major cryptocurrency exchange Kraken. Rizzo himself has his own global bullrun targets. He was recently a guest on the Best Business Show podcast, in which he stated that the peak of the bullish trend should be high enough to “surprise” crypto investors.
If Bitcoin wants to peak, it will need to convince some of those who never sell BTC to lock in profits. Those sellers will then quickly return to the market under the pressure of a soaring price, which will only accelerate the ascent to an all-time high.
The $500,000 line on the 1-day Bitcoin chart
Thus, Rizzo believes that the new bullish trend peak lies in the range of $300,000 to $500,000 per 1 BTC. Note that such level seems unattainable because at a rate of $300 thousand, its capitalization will be 5.64 trillion dollars – and that’s a lot on the background of the world’s top companies.
Market capitalization of the world’s top companies
However, once upon a time even the level of $60,000 per BTC seemed something far away - especially in 2018 and 2019. So there is a chance that, over the long haul, the expert will be right. However, we once again remind you that any forecasts may not come true due to hundreds of factors. Therefore, we recommend making financial decisions solely on your own and based on personal analysis.
Cryptocurrency investors at $300k Bitcoin
We think that such levels seem too excessive for the current bullrun cycle, as Bitcoin has already made three X's from its previous high of $20,000 from December 2017. Be that as it may, the cryptocurrency has surprised investors throughout its existence, which has shown that betting against BTC's rise over a long period of time is very dangerous. So perhaps the analyst's prediction will indeed come true at some point.
What do you think about it? Share your opinion in our millionaires’ cryptochat. There we will discuss other important events from the world of decentralisation.
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