Bitcoin too has proved resilient since it fell under the $75,000 mark in April. The cryptocurrency is up 7.20% during the last week alone. Investor confidence was on display recently with Bitcoin climbing back above the $104,000 price point.
Market analyst Mr. Wall Street states that the bullish trajectory of Bitcoin will continue over the next few months. He anticipates a potential peak at $200,000. He predicts a large market correction ahead of the final boom.
Mr. Wall Street shared his analysis on May 10, providing insights into the factors driving Bitcoin's price movements and future expectations. His analysis provides a critical guide for investors looking to make sense of the wild swings in the cryptocurrency space.
Anticipating Market Correction and Accumulation Phase
Mr. Wall Street predicts a 50%-70% crypto market correction for Bitcoin. Depending on how many you correct, this could substantially lower the cost, bringing it down to as low as $100,000 or even less. Pogliano recommends that you think of this correction as followed by a build-up phase.
We are projecting a range of $150,000 to $180,000 for BTC to accumulate in. This window will be a great time for investors to build positions ahead of the big end-of-window rush.
At present, the daily trading volume for $BTC is down 17.39%, with a market cap valuation of $45.65 billion. This sharp drop in trading volume could just be an early harbinger of that expected market correction.
Supply Shock and Market Dynamics
As we wrote about last week, there was a perfect storm of recent Bitcoin supply shortage at the over-the-counter (OTC) desks. This lack of supply obliged institutional investors to buy Bitcoin directly from crypto exchanges. This supply shock was a major factor in creating strong market demand for Bitcoin.
Moreover, a spike in extreme market panic, originating from the US tariff war with China, drove investors into the safe-haven gold asset. In the past, Bitcoin’s price has inflated with an average lag time of three months after spikes in gold prices.
Mr. Wall Street noted that even a small shift of funds from the gold market to Bitcoin could have a substantial impact. More specifically, a mere 1% flow from gold to Bitcoin could lead to at least a +13% pump in Bitcoin’s price.
Projected Timeline and Potential Peak
By this time, many Bitcoin investors should expect uptrend continuation of the market until approximately August-November. Over the course of this bull cycle, Bitcoin could reach up to $150k. Mr. Wall Street is betting on Bitcoin’s market benefits. He hopes for these benefits to extend 3-6 months after the end of April.
Long term, Bitcoin will go to $200,000. This price mark might be the most important psychological support as resistance.
Mr. Wall Street would probably say $200,000 will be a good bet to call the market cycle peak for Bitcoin. Investors should watch the market trend and be ready for possible market turmoil while approaching this price level.
