Blockchain analysis firm Glassnode’s co-founders Jan Happel and Yann Allemann have shared their bullish projections for Bitcoin (BTC), which currently trades 8% below its peak. The analysts suggest that Bitcoin could reach up to 65 times the value of gold, based on the BTC/gold ratio.
What Is the Key Threshold for Bitcoin?
Through their Negentropic account on social media platform X, Happel and Allemann emphasized that Bitcoin must surpass the crucial resistance level of $72,000 to achieve its previous high of $75,000. They noted that Bitcoin is expected to hover between $64,000 and $72,000, allowing altcoins to gain prominence. The $72,000 to $74,000 range is identified as a zone with significant supply and selling pressure.
If Bitcoin breaks through the $72,000 to $74,000 barrier, it could incite a short squeeze, potentially driving BTC to new all-time highs. Currently trading at $67,445, Bitcoin is nearing this critical resistance range.
How Could Market Factors Affect Bitcoin?
Happel and Allemann cautioned that broader market context, particularly inflation data from the US, might adversely impact the cryptocurrency market. They explained that strong income and high inflation could signal a potential interest rate hike by the Federal Reserve, prompting sales in the cryptocurrency market. This situation underscores the interconnectedness of macroeconomic factors and their potential effects on the crypto sector.
Key Insights for Investors
Here are some actionable insights for investors based on the analysts’ projections:
- Monitor Bitcoin’s performance around the $72,000 resistance level for potential breakout opportunities.
- Consider the impact of US inflation data and potential Federal Reserve interest rate changes on your crypto investments.
- Evaluate the BTC/gold ratio as an indicator of Bitcoin’s relative value and potential for significant gains.
Glassnode’s co-founders have also discussed the BTC/gold ratio, currently at 29, forecasting it could rise by approximately 2.24 times in the coming months. This would position Bitcoin to substantially outperform gold by the end of the current crypto bull cycle, potentially reaching 65 times the price of gold.
