Analysts at cryptocurrency exchange Kraken are looking at historical price action to determine where the top cryptocurrency Bitcoin might go in the long run. Here are the details…
Analysts at Kraken expect 15x bullish for Bitcoin
A new report from Kraken Intelligence uses Bitcoin’s 200-week moving average as a “crystal sphere”. Specifically, Kraken looks at the multiples where BTC has traded relative to its 200-week moving average over the past. BTC is currently trading close to its 200-week moving average of around $21,498, and a chart from Kraken shows that when Bitcoin’s price previously dropped below its 200-week moving average – major rallies happen frequently.
If Bitcoin once again climbs between 10 times and 15 times its 200-week moving average, which Kraken analysts say is in the historical range, this would mean that the future price range will be between $214,985 and $322,478.
Kraken Intelligence goes too far for its data. It charts Bitcoin’s price chart back to its early days. His chart highlights Bitcoin’s December 11, 2017 high of around $19,660 as the crypto king’s multiple hits a 15-fold local high. It also marks the 13th floor reached in November 2013. Of course, BTC did not rise 10x or more every time it touched its 200-day moving average. In March 2021, multiple crypto markets hit a local high of 5.8x before entering a significant downturn.
What is the latest situation in the price of the cryptocurrency?
Bitcoin, the world’s largest cryptocurrency, came close to reclaiming the $23,000 level on July 18. It rose as high as $22,958 on the Bitstamp exchange. The largest cryptocurrency has rallied more than 30 percent from the local bottom of $17,592 recorded on June 18, reaching its highest level since June 14. Bitcoin has since slashed some of its recent gains. It is currently trading in the red.
The recent rise in price has contributed to the improvement in market sentiment. It ended the longest “extreme horror” streak to date. However, Bitcoin is still 68.15 percent below its record high. At the time of writing, it is changing hands at $21,764, down 2.6 percent. However, in the last 7 days, it came to the fore with an increase of 8.8 percent. On the other hand, Ethereum, the second largest crypto, has seen an increase of 37 percent in the last 7 days.
