Strong Indications of a Bitcoin Bull Market Reminiscent of 2020's Peak
Hey! It looks like we're talking about Bitcoin and its potential bullish setup for this year. The experts are really excitin' things up with their predictions!
Gold, that traditional safe haven bet, has been on a wild run since the start of the year, hitting an all-time high of over $3,400 per ounce. But gold took a breather lately, down around 3%, while Bitcoin is pumping up about 4%. You know what they say - every time Bitcoin starts catching up like this, it's the start of something bigger! Last time around, Bitcoin went from $70,000 to $108,000. That's some wild ride!
Now, let's dive into some technicals. The M2 money supply, that measure of global liquidity, is on the rise for the first time since 2021. That's got the experts buzzing because they reckon every major Bitcoin bull market has followed this pattern: an expanding money supply, softening financial conditions, and dwindling trust in fiat currencies are like fuel for Bitcoin, and it's built to lap it all up.
Volatility also spiked to levels we haven't seen since March 2020. The CBOE Volatility Index (VIX), the measure of stock market volatility, has calmed down, but the uncertainty's still hangin' around. Bitcoin's the champ when things go chaotic because it offers certainty, finality, and neutrality when everything else breaks down.
Economist Timothy Peterson commented on the VIX, saying that if it stays low, his tracking model predicts a Bitcoin price of around $135,000 in the next few weeks. He's been right 95% of the time with this model, so keep an eye on that VIX!
Peterson also pointed out that the MVRV ratio, a measure that indicates how much Bitcoin is over or under its actual value, has bounced off 1.74. This marker has signaled the start of every major Bitcoin bull market, so that's another point in favor of a bull run.
Sellers seem to be tapped out between $90,000 and $100,000, and the price is breaking above the cost basis. That's a structure that typically precedes a vertical shoot-up in Bitcoin's price. So for those who missed out on the last run, it might be time to jump on board!
Now, if interest rates keep fallin', every 25 basis point decline could lead to a 10% increase in Bitcoin's price. That means a 75 basis point drop could push Bitcoin close to $130,000 within a few weeks. Sweet, huh?
So buckle up, Bitcoin fanatics! The experts see some explosive times ahead for Bitcoin, and they ain't shy about sayin' it!
- Bitcoin's surge seems to echo previous bullish setups, with the digital currency outpacing gold's recent dip.
- Experts predict that an expanding global liquidity and softening financial conditions could fuel Bitcoin's growth, similar to past bull markets.
- The Bitcoin price could reach as high as $135,000 in the coming weeks, according to economist Timothy Peterson's tracking model, given the current low VIX.
- The MVRV ratio, a marker signaling the start of every major Bitcoin bull market, has bounced off 1.74, suggesting another bull run might be imminent.
- The potential for a 75 basis point decline in interest rates could push Bitcoin's price towards $130,000 within a few weeks.
- Sellers appear exhausted between $90,000 and $100,000, hinting at a possible vertical price increase for Bitcoin, making it an exciting investment opportunity for those who missed out on the last run.
