An analyst, Lark Davis, has put forward a prediction that instills confidence in Bitcoin ($BTC). The analyst has said that BTC will eventually test the trading value of $190,000. However, he has not stated a concrete timeline and has said that the level will be in the books when the next surge happens. Currently, the flagship cryptocurrency is trading consistently within the defined range of $58,000 and $62,000, signaling no significant decline.
Davis has stated his prediction after noticing a Rainbow Pattern. It essentially analyzes the long-term outlook by taking into account a large range of values in a compact form. According to the Rainbow Pattern, the current state of the Bitcoin market is characterized by an accumulation phase. It is only poised to strengthen if FOMO sentiments shift gears.
The anticipated milestone of $190,000 depends on the achievement of $72,000 this month. This has not been stated explicitly, but rather stems from the reality that only an early upswing will support the huge mark for the said cryptocurrency.
Last week, the crypto market crashed, causing dips for every token in the market. BTC was down close to $53,000. A further slide would have resulted in a decline of a greater value. For reference, BTC is exchanging hands at $60,786.93, up by 2.38% in the last 24 hours, at the time of writing this article. It further reflects a jump of 7.09% in the last 7 days and 1.35% in the last 30 days.
To some extent, BTC values are influenced by the flows into Spot ETF. The last collective margin reported was for $39 million on August 13, 2024, with BlackRock’s IBIT leading the way. It marked an inflow of $34.6 million. Other factors that are affecting BTC and will potentially affect its values are rate cuts and overall trends in the market.
The first rate cut is expected to occur in September for 25 bps. A target of 50 bps is a far-fetched dream, but still on the table. This will help investors inject liquidity into the ecosystem, as their risk appetite will soar following a favorable decision by the Federal Reserve. Earlier predictions for Bitcoin tokens still hold validity on account of closing 2024 at around $100,000, or $150,000.
According to near-term predictions, Bitcoin will surge 17.295 in the next five days to $71,026. In the next 30 days, Bitcoin could see a 37.71% jump, reaching $83,386 and opening the door for the $100k milestone.
Current sentiments are neutral, with a 30-point FGI and a 14-day RSI of 44.97. Bitcoin has started to show upticks. Many are optimistic that it is only a matter of time before BTC breaches every crucial milestone.