David Krueger, crypto analyst at X, think bitcoin (btc) will rise between 100% and 200% in five months, mainly driven by fear of missing out (FOMO) once the coin surpasses $50,000.
Will bitcoin surpass $50,000 and reach $100,000?
Citing Tom Lee's historical analysis, Krueger believes that FOMO typically kicks in when bitcoin trades above a price level “that exceeds 97% of its historical days.” Lee is a co-founder and researcher at Fundstrat.
Looking at the development of the monthly chart, the analyst notes that this price stands at $50,000, a key psychological level that the bulls have failed to surpass since the mid-November 2023 bull run.
Consequently, if Lee's analysis and the analyst's claim come true, btc prices will likely rise in the coming sessions. However, what is unclear is when btc will surpass this $50,000 level, paving the way for $100,000 and even $200,000 five months after the decisive breakout.
As of writing, btc prices are firm and rising. The coin is trending above $46,500 and will likely surpass the January 2024 highs of around $48,700. Still, it remains to be seen whether the current bullish trend will cause excitement, possibly creating FOMO.
Looking at Google Trends data and organic searches related to bitcoin, interest is declining. Data bitcoin” target=”_blank” rel=”nofollow”>sample that the number of people searching for bitcoin in the United States has decreased and is around the levels of early 2021. Still, around that time, bitcoin prices began to trend upward, eventually reaching the 69,000 dollars.
Halving and Detect ETF Issuers Loading More Coins
While FOMO seems elusive in the case of spot rates, another analyst offers a different perspective. In response to Krueger's perspective, the analyst notes that historically strong interest in bitcoin comes around six months after the halving, and lasts up to 18 months. This event and constant or increasing demand create an imbalance between supply and demand that can skyrocket prices.
bitcoin will halve its rewards for miners in early April 2024. It's an event that can anchor the bulls, setting the stage for further gains, as projected by analysts.
The coin could also rise considering the pace at which bitcoin exchange-traded fund (ETF) issuers have been purchasing btc in recent weeks since the product was approved in mid-January 2024.
With Wall Street players like Fidelity, BlackRock, and other crypto firms like Bitwise loading up on more coins, btc will likely be scarcer than it has been following previous halving events.
Featured image from iStock, chart from TradingView
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