As short sellers fail and the cryptocurrency gets popular appeal, the price of the flagship cryptocurrency Bitcoin ($BTC) might rise above $50,000 in the midst of a massive financial disaster.
According to Raoul Pal, CEO of Real Vision and a former Goldman Sachs executive, during an interview with Anthony Pompliano, Bitcoin may rise roughly 80% from its present levels to $50,000 in less than a year when short squeezes occur.
When the price of an asset mistakenly signals a reversal from an uptrend to a downtrend, short sellers are compelled to buy back the asset they are selling as prices move against them. These compelled orders contribute to price increases.
Pal noted that short squeezes have historically had a significant impact on the rise of Bitcoin’s price. As more investors see Bitcoin’s value and accept it as a legitimate asset class, he believes short squeezes will continue, resulting in increased upward pressure for the cryptocurrency.
Pal predicted that when people lose faith in the traditional financial system and seek alternative options, they will become increasingly aware of the benefits offered by digital assets, particularly during times of economic turbulence. He claimed that in such a scenario, the value of BTC may potentially surge.
According to the former Goldman Sachs executive, the present rise in cryptocurrency interest is comparable to the 2013 surge, which aided the cryptocurrency surge at the time. Pal expects significant growth in the crypto market and believes Bitcoin will lead the way. Yet, he warned that such expansion would almost certainly be followed by more regulatory control and scrutiny from both governments and financial institutions.
According to CryptoGlobe, a top cryptocurrency analyst who gained a large social media following after correctly forecasting bitcoin’s 84% drop throughout that year, from over $19,000 to a little more than $3,000 in a year-long bear market, has suggested through two charts that Bitcoin could reach $150,000 by 2025.
Peter Brandt, one of the world’s most recognized classical chartists, released charts with his nearly 700,000 Twitter followers that suggested $BTC is forming an inverse head and shoulders pattern, which might take $BTC above $30,000 by the second quarter of this year.
The antithesis of the regular head and shoulders pattern is an inverse head and shoulders pattern. It is used to forecast downtrend reversals. When the price of a security reaches a low point, rises, falls below the previous low point, then rises again, and eventually falls a third time but not as low as the second trough, the pattern is defined. According to Investopedia, after the third trough, the price swings upward towards the resistance level at the top of the prior troughs.
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.