Bitcoin (BTC) continued to show strength this week, following a robust start to the week that saw its market value climb to a high of $63,700 on Monday. Interestingly, this growth comes despite major exchanges such as Binance and BitMEX seeing heavy shorting of Bitcoin since Saturday.
That said, analysts are now forecasting a major breakthrough for Bitcoin, with insights from Santiment suggesting that the ongoing fear, uncertainty, and doubt (FUD) in the market could drive prices even higher.
On Tuesday, analyst Kyle Chasse forecasted that Bitcoin could surge to $400,000 in the next cycle.
“If you don’t know what a super cycle is, you’re going to find out real soon,” he tweeted.
But while the pundit did not elaborate his reasonings, he presented a chart showing historical price pumps suggesting that Bitcoin’s past halvings, its growing institutional adoption, and its increasing role as a hedge against inflation could fuel this massive growth.
Notably, as Bitcoin’s supply becomes scarcer due to the halving, combined with ongoing global economic uncertainty, its status as “digital gold” appears stronger than ever. Additionally, the cryptocurrency has seen maturation over the past few years, with more regulatory clarity and wider acceptance from both retail and institutional investors, particularly following the approval of several spot ETFs in the U.S. earlier this year. These developments set the stage for a potential rally in Bitcoin’s value, as investors turn towards the asset to safeguard their wealth.
Elsewhere, the founders of popular crypto analytics firm Glassnode, who operate under the handle “Negentropic” on X (formerly Twitter), highlighted the Bitcoin Risk Index, emphasizing it is currently signaling an imminent significant price movement.
“This weekend the Bitcoin Risk Index touched 100, and its current slight retraction might stick. If we see a further retraction from here, we most likely hit a clear bottom with a strong move up in Bitcoin price. Historically, this has been the case.” They wrote.
Conversely, analyst Gert Van Lagen highlighted a promising technical pattern for Bitcoin known as the “descending broadening wedge,” echoing sentiments of veteran market analyst Peter Brandt. Notably, Lagen noted a 72% likelihood that Bitcoin will break out to the upside from this pattern. The pundit further explained that if trading volume continues to decline throughout the pattern, the breakout could see stronger performance. He emphasized that the most significant bullish movements often follow a prolonged uptrend, citing the current 20-month rise as a strong indicator.
“Once BTC leaves Base 4, the steepest kind of ascent $BTC has ever witnessed is to be expected,” he emphasized.
Interestingly, these bullish analyses are underscored by data from CryptoQuant, revealing that approximately 236,155 BTC, valued at around $14.22 billion, have been withdrawn from exchanges over the past two months. This substantial outflow indicates a tightening supply, which could further support the bullish outlook.
At press time, BTC was trading at $63,331 reflecting a 0.96% surge over the past 24 hours.
