Bitcoin prices have been range-bound and consolidating for
quite some time but jumped over 9% in the last 24 hours after Elon
Musk’s tweet on Sunday. A number of crypto analysts are still unsure
about bitcoin’s future price while a few expect a rebound from last
month’s lows. One market report notes that bitcoin will likely climb
back up “the stock to flow line in the coming months” leading to a price
of around $85K before the year’s end.
Financial Analyst: Bitcoin Will Likely Cross the Psychological $40K Threshold Again
Elon Musk’s tweet — that said Tesla would accept bitcoin again if the
energy used to process transactions was at least 50% renewables —
lifted bitcoin’s (BTC)
price over 9% as the crypto asset neared the $40K range again. Alex
Kuptsikevich, Fxpro senior financial analyst explained in a note to
Bitcoin.com News that there’s been a lot of newfound excitement in the
world of cryptocurrency lately.
“The crypto market is experiencing another phase of excitement
following the positive decision by El Salvador’s parliament to include
Bitcoin in the country’s official options of payment,” Kuptsikevich
stressed in his note. “It is hard to underestimate this precedent on a
global scale, which is why we are now witnessing such strong positive
price momentum. Investors, who until recently had been putting off their
purchases, are entering the market.” Kuptsikevich continued by adding:
Over the past 24 hours, Bitcoin has been adding 13% and
changing hands for $39,500. Thus, the benchmark cryptocurrency is once
again trying to rush the $40K threshold. The success of this test of
local highs will define the short-term prospects of the crypto market as
a whole. The total capitalization of cryptocurrencies in the last 24
hours increased by $126 billion. It is very likely that if the threshold
is successfully overcome, we will see a new buying momentum, which will
push the first cryptocurrency to the area of $42-$44K.
Decentrader Analysis: ‘New All-Time Highs for Bitcoin Before the End of This Year’
Another market update authored by Decentrader sees the leading crypto asset attempting to turn things around. There’s also a chance BTC could smash new all-time highs this year according to Decentrader’s analysis coupled with the stock-to-flow (S2F) price model.
“The fact that price has now spent several weeks below the 200DMA is
not a bullish sign,” Decentrader’s analysis notes. “However, [closing]
above the 200DMA and 128DMA would bring a lot of confidence back into
the market,” Decentrader researcher Philip Swift added.
Decentrader leverages a few indicators like SOPR (Spent Output Profit Ratio),
an Active Addresses Sentiment Indicator, and stock-to-flow (S2F)
divergence. What is interesting about Stock to Flow right now is how far
price has moved away from the Stock to Flow line.
has only ever been this far below S2F line four times before in
Bitcoin’s history,” explains Decentrader researcher Philip Swift. “I
have highlighted these instances with orange arrows,” he explains.
“The divergence tool at the bottom of the Stock to Flow chart shows
the extent to which price is moving either side of the stock to flow
level. On the chart [above] we see price is trending below the stock to
flow line and has only ever been this far away from it four times
previously in Bitcoin’s entire history,” Swift explained.
The Decentrader researcher Swift highlighted that after each time in 2012, 2013, and 2017 the price of BTC
rebounded remarkably from significant drops to rise back to the S2F
level. “The last time was in the 2017 bull run when price was at $1,900
before rallying up to $5000 in the following 6 weeks,” Swift said. The
Decentrader analyst insists:
While we may not rally so hard and fast this
time, fundamentally nothing has changed with how Bitcoin works, nothing
is broken, we are just experiencing a lot of bad media coverage after a
strong rally at the start of the year. So we may well see price make
its way back up to the stock to flow line in the coming months. This
would mean new all-time highs for BTC before the end of this year, as the Stock to Flow line is currently sitting at $85,000.
Delta Exchange CEO: ‘Bitcoin’s Options Market Shows a 30% Chance of BTC Closing at $50K by the End of July’
Decentrader’s and Kuptsikevich’s BTC
price outlook is a lot different than those who are feeling bearish
about crypto markets. Investment bank JPMorgan Chase and its group of
analysts think that a bearish price breakdown
could be in bitcoin’s future. Researchers at JPMorgan Chase noted “an
unusual development and a reflection of how weak bitcoin demand is at
the moment from institutional investors.” In another report, JPMorgan noted that “similarly situated, smaller nations,” may follow El Salvador’s trend.
Pankaj Balani, CEO of Delta Exchange explained to Bitcoin.com in an
investor’s note that bitcoin’s options market shows a 30% chance of BTC closing at $50K by the end of July.
“After a volatile week, Bitcoin has bounced back and is trading close
to $39,500 on the spot. Market sentiment remains cautious as traders
continue to pay a premium for downside protection on the monthly and
quarterly maturities,” Balani said. “On the weekly and bi-weekly
maturities though, the Call IVs have started to rise and approach those
of Puts. Options market is pricing close to a 30% chance that Bitcoin
will be close to $50,000 by the end of July and a 15% chance that it
will be close to $30,000 for the same maturity,” Balani added.
source link : https://news.bitcoin.com/analyst-claims-bitcoin-will-break-40k-threshold-s2f-audit-shows-btc-could-tackle-85k-by-years-end/
