If Bitcoin breaks the $ 51,000 barrier, Stockton’s expectation is that it can hit $ 65,000. That represents a potential rise of 28% from current levels.
“Once initial resistance clears, which we expect beyond the very near term, the target resistance would become the all-time high,” Stockton explained in a note. Bitcoin peaked at around $ 64,900 in mid-April.
But if Bitcoin doesn’t hit $ 51,000, it could plummet to $ 41,500, according to Stockton. This would represent a possible 18% disadvantage. That support level is just below Bitcoin’s 50-day moving average.
“Further consolidation is likely as short-term momentum has weakened and there is room for oversold territory in the short term. However, we do not believe that an initial test of support at the 50-day MA is imminent.” Stockton concluded.
A statement on the future of cryptocurrencies
From the side of the more optimistic, Bloomberg’s senior commodities strategist, Mike mcglone, has reaffirmed in its projection of a six-figure Bitcoin, arguing that the first-born cryptocurrency is on its way to becoming a global reserve asset that complements the US dollar.
The September issue of Bloomberg’s Crypto Outlook rated BTC at $ 100,000 and ETH at $ 5,000 as the “path of least resistance” after the two assets survived a correction of more than 50% during summer.
While the six-figure predictions for Bitcoin are nothing new, McGlone’s long-term forecast places BTC near the center of the global financial system. “We believe that Bitcoin represents the digital future,” McGlone said after explaining that the dollar has advanced more than 300% against major pairs since President Richard Nixon rejected the dollar’s gold parity in 1971. He further explained: “We envision a future of Bitcoin, the digital reserve asset, which complements the reserve currency of the dollar.”
The total market capitalization of all cryptocurrencies reached $ 2.4 trillion during Friday’s peak compared to a low of around $ 1.2 trillion in mid-July.