Last Dip Buying Opportunity? Analysts Predict Bitcoin Will Soar Beyond $90K Soon
- Crypto markets saw typical fluctuations over the weekend, with BTC briefly rising by 6% before dipping again.
- Despite recent volatility, BTC prices are similar to mid-August levels, countering predictions of a drop below US$40k.
- Emotional trading continues to influence the market, as indicated by the Fear & Greed Index currently in “Fear” territory.
- Analysts predict significant potential for BTC, noting a possible breakout to US$92k and higher, driven by a “bull pennant” pattern.
The crypto markets are in a state of flux, with most major assets trading in a range over the weekend. While BTC has rallied over the past week from US$55k (AU$81.9k) to currently just below US$59k (AU$87.9k), which is a solid 6% increase, in the past couple of hours it has dropped by 2%, from just over US$60k (AU$89.4k).
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Despite this, considering BTC’s monthly moves, not much has changed and the number one crypto is back where it was in mid-August. Some analysts had previously predicted the BTC price could fall below US$40k (AU$59.6k), which has not yet come to pass.
Meanwhile, the Fear & Greed Index remains in Fear territory, a slight improvement over last month when Extreme Fear was prevalent.
The crypto market is of course highly influenced by emotional behaviours, where rising prices trigger greed and FOMO, while declines often lead to panic selling.
The Fear and Greed Index tries to mitigate these emotional responses by suggesting that extreme fear may indicate a buying opportunity, whereas excessive greed could signal an impending market correction.
Analyst Says US$90k Possible, With “Bull Pennant” Still Possible
Well-known analyst Titan of Crypto believes that BTC may be ready for a breakout and a three-month run, possibly hitting the US$92k (AU$137k) mark. And, according to the analyst, there’s potential for much more:
Bull Pennant Still in Play: $158,000. A massive bull pennant is forming on the monthly timeframe. If it plays out BTC could be catapulted to the moon.
A “bull pennant” is a chart pattern used in technical analysis that typically signifies a continuation of an upward, or bullish, trend. The pattern is characterised by a large increase in price followed by a period of consolidation – depicted by converging trend lines forming a triangular shape, resembling a pennant.
Fellow analyst Michaël van de Poppe also sees a lot of room for prices to rise, not only for crypto but also for commodities, as evidenced by comparing the S&P commodity index with the S&P 500. On X he wrote:
The last time we saw these valuations for commodities were 1971 and 2000. Commodities & Crypto are extremely undervalued and it’s likely that commodities go into a 10-year long bull market. I’m expecting a lot of upside from these two asset classes.
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In 1971, the US ended the gold standard, which led to significant changes in commodity prices. The year 2000 marked the end of a major bull market in stocks and was significant for economic shifts that affected various asset classes, including commodities.