The long term Bitcoin investors have a reason to smile based on positive speculation by an independent financial consultant Alan Masters, on benefits that will accrue only to individuals holding Bitcoin and not necessarily transacting it for short term profits.
The financial analyst seems to predict a skyrocketing trend in the world of cryptocurrency, which could possibly hit $30,000 by May 2022. Quoting an anecdotal technical indicator to support his optimistic point of view known as the Relative strength indicator (RSI), a technical indicator used in the analysis of financial markets, that projects the speed and change of price movements.
RSI readings at given thresholds indicates whether an asset can be overbought or oversold, for instance a reading above 70 and below 30 respectively. For the first time, bitcoin has been overbought lately since December 2017, with a reading above 80 hence Mr Masters considering the positive trend as an optimistic price increase.
The analyst Derived hints and clues from macroeconomics basics to validate his bitcoin target of $30,000. This was as a result of him recognizing an uptrend in shooting prices by the analysis indicator with a great deal of fear of missing out (FOMO), thus retailers of the cryptocurrency chipping in by buying in plenty.
Much of the upside trend in the bitcoin market can be linked to various aspects that are not only limited to massive fears of inflation by cryptocurrency investors and traders, the nearly to zero interest rates introduced by central banks in trying to fill up the huge economic recession caused by the COVID-19 pandemic. To add on these scenarios, the US dollar has also been adjusting lower since March 2020.
The expansionary policies by the government to inject money in the economy through spending and lending to investors led to a decrease in yields in government bonds, and at the same time declining the value of the US dollar. Thus investors prompted to look for other ventures to capitalize in. Taking a massive advantage of these factors, Bitcoin seems to benefit and have a momentum thus convincing traders that it is likely to continue attracting capital provided the central banks continue printing money, and big institutions buying bitcoin by the boatload, a clear indication that something massive is yet to happen.
The Reason Behind $30,000
This came as a result of ratios defining the extent of a correction or pullback In the Fibonacci retracement graph as the long term price target for bitcoin in the trending cryptocurrency world. Mr Masters had noticed an uptrend that is backed by long term projections and speculations from his optimistic point of view. He stated that Bitcoin per US dollar is expected to hit its previous high record of approximately $20,000 by next year, portraying that it is in fact a lucrative entity to venture in without reluctance.
He also added that there is a likelihood of the cryptocurrency shooting up 10x higher that what people could imagine in the crypto business world.