Cryptocurrency analyst Caleb Franzen, founder of Cubic Analytics, suggested that Bitcoin BTC/USD could potentially reach a high of $180,000. This prediction is based on a new bull signal that hints at a repetition of historical gains.
What Happened: Franzen revealed that the Bitcoin Williams%R Oscillator, a tool used to measure the strength of price trends, is flashing a rare bull signal for only the fourth time in history.
According to Franzen, Bitcoin just completed its highest monthly close since October 2021. The 36-month Williams%R Oscillator has closed above the overbought level for the fourth time in history, a signal that has previously appeared in 2013, 2016, and 2020.
These years marked the early stages of a Bitcoin bull market. Although the bull runs have shrunk in size each time, Franzen suggests that even if Bitcoin price returns match the 2020 gain of 260%, it would result in the King Crypto hitting the $180,000 price.
"Maybe this time is different and the ETFs have changed crypto market dynamics, but I think that market psychology will repeat the same way that it always has," he said.
However, Franzen warns that these unusual events should not be seen as a guarantee of future performance.
"This study guarantees nothing. It simply tells us how market participants have behaved in the past when investor behavior was similar from a statistical perspective."
Why It Matters: Franzen’s prediction aligns with recent bullish sentiments in the market. Alex Thorn, Head of Research at Galaxy Digital, predicted a new all-time high for Bitcoin within weeks, attributing the surge to an influx of institutional investments.
Similarly, veteran prop trader Peter Brandt suggested that Bitcoin’s unprecedented $20K monthly gain could be a “starting” candle leading to much larger gains.
Bitcoin’s recent rally to $64,000, its highest point since November 2023, was also lauded by bestselling author Robert Kiyosaki, who credited Bitcoin for "kicking the fake US dollar’s b*tt."
Read Next: Dogecoin’s Social Sentiment Surges 600% In Single Day As DOGE Crosses 10 Cent Mark
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo by Michael Förtsch on Unsplash
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
