Economist Predicts “Monster” Move for Bitcoin: Is A 6X To $200,000 On The Table?
04 Outubro 2023 - 12:00AM
NEWSBTC
Macro-economist Henrik Zeberg thinks Bitcoin (BTC) and other risk
assets are gearing up for a “monster” move, with the trend still in
its early stages. Zeberg’s predictions are based on the
BTC/SPX Ratio, an indicator that compares Bitcoin’s performance to
the S&P 500 index (SPX). BTC/SPX Ratio Says There Is A Monster
Move Incoming Despite recent fluctuations and concerns about the
crypto market’s sustainability, Zeberg remains bullish on BTC. In
the analyst’s view, the BTC/SPX Ratio offers strong evidence that
the Bitcoin uptrend is “just starting.” Based on price movements,
the current leg down in September could provide opportunities for
traders to accumulate. The BTC/SPX Ratio is an indicator that
assesses the relative performance of Bitcoin and the stock market.
The ratio is derived from dividing the Bitcoin and S&P 500
index (SPX) spot prices. When it is rising, like it is
presently the case, it indicates that Bitcoin is outperforming the
stock market. Conversely, a declining ratio suggests that Bitcoin
is underperforming. In that case, banking on the stock market could
generate better returns than HODLing BTC. Related Reading: Twitter
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the chart shared on October 3, Zeberg said a “bull” signal was
triggered in February 2023, preceding a substantial rally in
Bitcoin’s price. By July 2023, Bitcoin had surged to approximately
$32,000. While there has been a cooling-off period since then,
Bitcoin is trending above February highs at around $25,200,
confirming the uptrend. Between April 2019 and May 2021, when a
similar bull signal was printed, BTC soared by 6X, while the
S&P 500 saw a more modest increase of 41%. Zeberg’s assessment,
based on the BTC/SPX Ratio, suggests that Bitcoin–and other risk
assets, by extension, can post strong gains in the months ahead.
Will Bitcoin Fly To $200,000 This Bull Run? Whether this will be
printed or not can only be speculated. Looking at the BTC/SPX
Ratio, the indicator is lagging and doesn’t precisely capture
market peaks or bottoms. For instance, the last bear signal
in May 2021 was months ahead before Bitcoin peaked in November 2021
and fell. Therefore, while the bull signal was recorded in early
February 2023, it is unclear whether there will be another leg down
before prices rise or bears press on, pushing the coin back to 2022
lows. Related Reading: Cardano To Shed Its Gains?
Profit-Taking Spikes To High Levels If buyers take control and the
BTC/SPX Ratio indicator is correct, it is impossible to determine
how high BTC will rise at current rates. If the last bull run is
anything to go by, BTC may surge by 6X. In that case, BTC may rally
and push beyond $200,000 in this bull cycle. Feature image from
Canva, chart from TradingView
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