Crypto analyst Nicholas Merten is responding to a recent article in Forbes that makes the case for Bitcoin’s rise to $100,000.
Merten says his target for Bitcoin’s next cycle is $60,000 to $100,000. He expects global economic woes to play a major role as institutions continue to roll out new ways for investors to enter the market.
“In this next cycle, you’ve got a lot of things to look forward to. And that’s mainly the macro environment that’s shaping up for Bitcoin. And we not only have new entry vehicles, we have the brokerage platforms like Fidelity opening up eventually to retail consumers. You have things like Bakkt; you have LedgerX; you have GBTC that’s buying a larger portion of the Bitcoin supply for more people to buy their ETN. You have a lot of entries even without an ETF.
But the biggest thing is that there’s going to be a huge demand versus the shortage [in supply] that we’ve seen in this case for cryptocurrency markets. We’ve already seen it over this past year. It’s why Bitcoin has moved as dramatically as it has. But as the macro environment starts to become more clear. If equities start to pull back and if money starts moving out of the negative-yielding bonds, across the world – a $15 trillion market of negative-yielding bonds – and people start moving into hedges like gold, silver and Bitcoin, I could easily see this kind of volume coming in…
I do believe that the target range for the next high is going to be somewhere between $60,000 to $100,000. I know a $40,000 gap is going to be pretty wide. But I’m not going to try to make any solidified guesses two years out from when we might be setting the peak.”
In the short term, Merten expects Bitcoin to once again rise above the $12,000 mark.
“The thing that it looks like to me is that this is going to push through. When you have three or four days like this, where we’ve had price pushing up against the line of resistance rather than hitting a rejection and going down, it shows that the momentum is coming in. And it makes sense with the devaluation of China’s currency and the exposure that Asian markets predominantly have in cryptocurrencies.”
On the flip side, CoinDesk analyst Omkar Godbole cautions that Bitcoin’s price range in recent days could also be a sign of bullish exhaustion.
“Essentially, BTC has charted lower highs above $12,000 since Tuesday. At the same time, it has created higher lows in the last three days.
That narrowing price range is a sign of indecision in the market place.”
Right now, Bitcoin is up 2.72% at $11,864 according to COIN360.
Ethereum is down 3.38% at $210.95, XRP is down 1.83% at $0.3023 and Litecoin is down 5.81% at $84.26.
Here’s a look at the latest analysis from across the cryptosphere.
Bitcoinist – $12,400 now in sight as bullish pennant forms
Crypto Daily – Next line of support at $209 with stops expected below $197
Litecoin, Bitcoin Cash, Binance Coin, Tron