July 24, 2024
Bitcoin News

Crypto Analyst Predicts Massive Upside for Bitcoin as Global Liquidity Points to Price Acceleration

A popular crypto analyst, TechDev, is stirring excitement among the crypto community with his prediction of a significant upward move for Bitcoin (BTC) based on a key indicator – global liquidity cycles. TechDev, who has a sizable following of 416,400 on Twitter, points to the Chinese 10-year bonds (CN10Y) against the US dollar index (DXY) as his chosen metrics to portray global liquidity cycles.

Expanding on the concept, TechDev pairs the metric against the aggregate major central bank balance sheet, which provides insight into the money-printing activities of reserve banks worldwide. According to a chart shared by TechDev, global liquidity appears to be on the verge of an uptrend as major central banks continue to expand their balance sheets. Interestingly, the chart also shows that Bitcoin closely follows global liquidity, indicating that the cryptocurrency could experience rapid price acceleration in the coming months.

If Bitcoin continues on this trajectory, TechDev believes it could reach his logarithmic growth curve (LGC) sometime by or before 2025. LGCs are designed to estimate Bitcoin’s long-term highs and lows while disregarding short-term volatility. According to his analysis, the upper bound of the LGC could fall within the $100,000-$140,000 price range. However, TechDev emphasizes that this is a soft approximation based on specific LGC curve parameters and impulse steepness.

Currently trading at $29,186, a price surge to $140,000 would represent a staggering 380% increase. It is worth noting that Bitcoin has experienced a recent dip of 0.68% in the past 24 hours but remains up nearly 0.5% in the past seven days. Despite the positive trend, Bitcoin is still approximately 58% down from its all-time high of over $69,000, reached in November 2021.

TechDev also points out other indicators that add to the optimism for Bitcoin’s future. The three-week altcoin market cap chart is currently at its tightest compression ever, hinting at potential volatility ahead. Moreover, Bitcoin’s Bollinger bands width (BBW) is hovering slightly above 0.50, which is considered a relatively low level. Traders closely monitor the BBW, as it could indicate an explosive move in either direction after a period of low volatility.

The analyst shares a chart showing that the last three instances where Bitcoin’s BBW came close to 0.50, the cryptocurrency entered a full-blown bull market. This observation adds further weight to TechDev’s prediction of a significant upward move for Bitcoin.

As TechDev’s analysis gains traction and more investors take note, the crypto community eagerly awaits whether Bitcoin will indeed follow the path of global liquidity and achieve the projected price acceleration. If the prediction holds true, it could mean exciting times ahead for Bitcoin enthusiasts and investors.