Bitcoin’s price could potentially double from its current value of $69,000 within the next three months, according to an analysis based on a widely-used momentum indicator. TechDev, a pseudonymous analyst with a following of 440,000 on X, stated that Bitcoin has closed two consecutive months above the upper Bollinger Band, and historically, every time this has happened, its price has doubled within the following three months. If this trend continues, Bitcoin could reach around $140,000 by July.
Bollinger Bands are a technical analysis tool that measures the momentum and volatility of an asset within a specific range. When prices touch the upper band, it can indicate an overbought signal, while touching the lower band suggests that the asset is oversold. However, Bollinger Bands are just one of many technical indicators available to analysts, and they are more reactive than predictive, relying on past price action and volatility data. Additionally, their accuracy can vary significantly during peak bull and bear markets.
SkyBridge Capital CEO Anthony Scaramucci recently appeared on CNBC and predicted that Bitcoin could potentially reach as high as $170,000 during this cycle. He also suggested that Bitcoin could eventually trade at around half the total value of the global gold market. Scaramucci acknowledged that this wouldn’t happen overnight and that there would be significant volatility along the way. Currently, Bitcoin’s market capitalization stands at $1.35 trillion, while gold has a total value of $15.8 trillion. To trade at half the value of gold, Bitcoin’s market cap would need to grow approximately six times from its current level, resulting in a price of roughly $400,000 per BTC.
Scaramucci referred to the recently approved spot Bitcoin ETFs as “selling machines” and argued that these products would further drive retail and institutional demand for Bitcoin. These ETFs have already seen over $12 billion in net inflows across ten products (excluding Grayscale). In comparison, when the Gold ETF (GLD) was launched in November 2004, it took nearly a year to accumulate $10 billion in inflows.
Scaramucci, like many other market commentators, sees the upcoming Bitcoin halving, scheduled for April 20, as a significant catalyst for short-term price appreciation. He believes that this event, combined with regulatory developments and the increasing popularity of Bitcoin ETFs, will continue to positively impact wider crypto adoption.
Ripple CEO Brad Garlinghouse also expressed optimism about the crypto sector, predicting that its value would double by the end of this year. Garlinghouse highlighted the upcoming halving, regulatory advancements, and the growing popularity of Bitcoin ETFs as factors that would contribute to the sector’s continued growth. He expects the entire crypto sector to be worth $5 trillion by the end of the year.
In conclusion, there are positive expectations for Bitcoin’s price to potentially double within the next three months. Analysts point to Bitcoin’s performance in relation to the Bollinger Bands, historical trends, and the upcoming halving as factors that could contribute to its price appreciation. Additionally, industry leaders like Scaramucci and Garlinghouse anticipate further growth in the wider crypto sector, driven by factors such as regulatory developments and the increasing adoption of Bitcoin ETFs.