According to a number of experts, in the near future, a rally will start on the cryptocurrency market. A number of signs indicate that the demand for bitcoins and other digital financial assets will exceed the possible supply.
Analyst and trader Josh Rager are confident that the price of Bitcoin will exceed the threshold of $ 150,000 already in 2023. He made this prediction based on a study of the Bitcoin chart in recent years. Cryptocurrency has some features and differences from other assets. Due to the high volatility after the “bottom” phase, it always shows strong growth.
Technical analysis of exchange assets uses indicators and historical data to predict the value of various assets. According to the theory, patterns tend to repeat with some periodicity.
Each time before takeoff, cryptocurrency prices were about half a year in a phase of low demand. On the charts, it represents a side corridor and a small range. After breaking through its upper boundary, the asset shows strong growth, by hundreds of percent.
Kane Warwick, CEO of Blueshift, also sees all the signs of an early rally in the cryptocurrency market. His company processes payments for large trading floors and Warwick has all the data it needs for analysis.
In his opinion, the demand from commercial organizations to the cryptocurrency market has now significantly increased. The last few months there has been an active accumulation of liquidity. This situation occurred in 2016, before the sharp rise in demand for Bitcoins.
Fundstrat Global Advisors analyst Tom Lee said that the current price of Bitcoin does not reflect its real value. Already, its fair value is at $ 14,000 per coin.
Kane Warwick notes that retail buyers are now becoming more active. The situation is very similar to the past growth cycle when the price of Bitcoin rose by 1,800% within one year.
Over the past few days, several confirmations of growing demand have come. Thus, the number of search queries with the word "Bitcoin" has increased three times. Moreover, the numbers on most search engines do not differ. Moreover, the dynamics coincide for the Chinese Baidu, and for the global search engine Google.
The request "bitcoin" came to the leading position in the largest search engine in China, Baidu. Its closest competitor is more than 4 times behind.
Another important sign of an early rally in the cryptocurrency market is a sharp increase in turnover. According to the information from the Chicago Stock Exchange of CME, only on April 4, 22,542 bitcoin transactions of more than $ 500 million were made. This is 6 times more than the standard turnover for previous periods.
Over the coming weeks, the situation will finally clear up. Experts are sure that if demand continues, it will mean the start of a rally in the cryptocurrency market. Of course, the figure of $ 150,000 seems too optimistic. However, digital financial assets expect significant growth.