By George Ward
Renowned trader Peter Brandt recently unveiled Bitcoin as one of his primary investment holdings. With a storied career spanning over four decades in market analysis, Brandt’s endorsement adds weight to Bitcoin’s status as a legitimate asset class.
Brandt’s proclamation included a comparative chart of Bitcoin with gold, emphasizing the digital currency’s prominence in his investment portfolio. Using the chart, Brandt highlighted patterns indicative of previous breakout moments in BTC’s price cycles.
Halving Anticipation And BTC’s Price
Since March 26, the leading cryptocurrency’s price has remained in a tight consolidation phase, oscillating between $68K and $71.5K, with market participants eagerly awaiting its next price action. Meanwhile, many analysts believe that the imminent halving event is one of the reasons for the lack of direction in BTC’s price.
They also believe the quadrennial event will cause increased inflows into US-based spot Bitcoin ETFs. Many analysts foresee this event as a catalyst capable of propelling Bitcoin’s value into six digits before the year ends.
However, Peter Brandt’s bullish outlook extends beyond the halving event, with the veteran trader predicting that BTC would trade at $200K before the end of the current bull cycle. Echoing this sentiment is cryptocurrency analyst Michael van de Poppe, who anticipates BTC’s price surge to a peak of $600,000 during the current bull cycle, citing historical pre-halving momentum.
Meanwhile, technical analysis by veteran crypto analyst Ali forecasts a 4.44% increase in BTC’s price to $74,760 within the short term. However, this prediction will only become true if BTC trades above the 200 EMA, is above the neckline resistance of $71.6K, and the formation of a head-and-shoulders pattern on the 30-minute chart.
A Sign Of Changing Tides?
Meanwhile, on-chain data shows that BTC’s recent surge in volatility has surpassed that of ETH. Over the past 30 days, Bitcoin’s volatility skyrocketed to a staggering 60%, overshadowing Ethereum’s relative stability since February.
This surge in volatility could signal a significant shift in investor sentiment towards Bitcoin, as it experiences larger and more frequent price swings than Ethereum. Should Bitcoin maintain its position above this $66.5K price level, analysts suggest an upward trajectory towards the $69.4 mark.
In contrast to BTC, ETH has exhibited a more subdued performance, characterized by its steady growth trajectory and relatively smaller price fluctuations. Ethereum’s crucial support price is around $2.98K, while its next critical resistance level is the $3.6K mark.
The Risks And Rewards Of Bitcoin’s Volatility
ETH’s lack of significant price volatility may render it less appealing to traders seeking high-risk exposure. While Bitcoin’s volatility piques investor interest, it poses inherent risks and could lead to substantial losses for unwary investors.
As Bitcoin’s price trajectory remains uncertain, market participants eagerly await further developments that would create profitable opportunities.