Reshab AgarwalBitcoin has been getting a lot of backslash because of the most recent price crash that it witnessed. And many analysts did say that this was because it was overbought. When overbuying happens, small transactions could lead to immense price jumps as the market liquidity is low. But now, the most recent research done by analysts suggests that Bitcoin is not overbought can could cross $75k very soon. They did mention that the bull cycle could end at this price, but yes, there is hope.
Bitcoin could cross $75k
After rising to a record $58k, the price of the cryptocurrency made an all-time-high. But from there on, it fell back by more than 20% in just a week which was also the worst weekly loss of Bitcoin since last March. Many have been speculating that overbuying is happening, and this is affecting the price of the cryptocurreny. But now, one of the biggest Bitcoin exchanges, Kraken, said that Bitcoin is still far, far away from the overbought territory. The exchange noted that based on the previous price movement history of Bitcoin, we could expect it to reach $75,000 before the current bull cycle ends.
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But to reach that price, one of the major hurdles that the cryptocurreny faces is the resistance at $52k. It has received multiple rejections at this price and even most recently after gaining around 5%, the cryptocurreny crashed back below $51k. There is a huge push required for Bitcoin to be able to again cross the 52k mark and stay comfortably above that. Kraken also compared the trading pattern of Bitcoin and its current prices to the 1st quarter of 2013. The exchanged told us based on what they are seeing there is a high probability that if the trend continues the returns in the coming months could be huge.
Another important thing that Kraken pointed out was Bitcoin’s present upside potential. By basing the calculations purely on mathematics and not speculation Kraken also said that the way BTC works and the way it corrects itself after hitting highs shows that there is still time left for a bear market. They also talked about the log chart that gives us this data.
Future Target!
Kraken CEO says that the growth potential of Bitcoin is huge. So a $1 million price target in the next ten years is reasonable. If this happens many are going to be millionaires while many will regret not investing in it. One thing is for sure that Bitcoin will eventually overturn gold’s market cap and become the most valuable asset on the planet. As of now, the market cap of the cryptocurrency is around $900 Billion.
What are your thoughts on Bitcon crossing the $75k price point? And have you yet invested in the cryptocurrency? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.
Also Read: New tech companies are considering crypto as a payment method.