The co-founders of the crypto analytics firm Glassnode believe that Bitcoin (BTC) could soar into six figures early next year.
Glassnode co-founders Jan Happel and Yann Allemann, who share the handle Negentropic on the social media platform X, say that the king crypto appears ready to greatly outperform gold on a rally toward $120,000.
“Will BTC reach 98x the price of Gold?
BTC-Gold ratio seems to be ready to fly.
RSI (relative strength index) rising and greater than 50.
MACD (moving average convergence divergence) in Bullish cross-over and rising.
Fibonacci extensions gives the likely extension levels.
Will we see Gold ~$1,200 and BTC at ~$120,000? These levels are consistent with (macro economist) Henrik Zeberg forecasts.”
Looking at the analysts’ chart, they predict the BTC/XAU trading pair, which is the price of Bitcoin per ounce of gold, will soar to 98x the price of gold by early 2024 after completing the fifth wave of the Elliot Wave pattern (marked 1, 2, 3, 4, 5).
The analysts also say that BTC’s risk signal, a metric that gauges the level of risk of a major price dip for the top crypto asset by market cap, indicates BTC is finding support after a recent drop to below the $28,000 level.
“BTC enjoyed a 6% surge on Sunday, but hitting a roadblock at $28,500 led to a 4.5% dip the following day. Nevertheless, the risk signal’s sharp drop below the high-risk threshold suggests that a major decline is improbable at this stage.”
The analysts note that Bitcoin is retesting a “neckline” on the monthly chart and likely entering a consolidation phase before rallying upward.
A neckline is a trendline drawn below a head and shoulders pattern and used as a key indicator of a reversal.
“Third time’s a Charm? BTC has been consolidating above the neckline after finalizing the major bottoming pattern. DXY (US Dollar Index) seems to have topped and is ready for a larger descent. The structure for BTC seems to be shaping up a rising diagonal. Will wave 5 become ‘The Charm’?”
Lastly, the analysts say that additional factors are lining up for bullish BTC momentum, including increased Bitcoin options interest.
“Uptober is here, and we’re riding the bullish wave with style. BTC rockets past $28,000, marking a dynamic start to the week, month, and quarter! We’re diving into the heart of BTC season, and risk is hitting the low-risk zone. Price soars to its highest point in over a month, fueled by ETF (exchange-traded fund) optimism and seasonality. Late October options volume teases exciting price action ahead.”
BTC is worth $27,948 at time of writing, up 1.2% in the last 24 hours.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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