The price of the flagship cryptocurrency Bitcoin ($BTC) could surge to $50,000 amidst a widespread financial crisis as short sellers fail and the cryptocurrency gains greater mainstream acceptance.
That’s according to Raoul Pal, CEO of Real Vision and a former Goldman Sachs executive, who during an interview with Anthony Pompliano noted that BTC could surge nearly 80% from its current levels in less than a year to $50,000, as short squeezes occur.
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A short squeeze occurs when the price of an asset signals a reversal from an uptrend to a downtrend incorrectly, and sees short sellers forced to buy back the asset they are selling as prices move against them. These forced orders further help prices rise.
Pal stated that short squeezes have had a noteworthy impact on the rise of Bitcoin’s price in the past. As an increasing number of investors acknowledge Bitcoin’s worth and accept it as a valid category of assets, short squeezes may continue to take place, resulting in heightened upward pressure for the cryptocurrency, he says.
Pal anticipated that as individuals lose trust in the conventional financial system and explore alternative options, they might become more conscious of the advantages provided by digital assets, particularly during times of economic turmoil. In such a crisis, he asserted that BTC’s value could potentially skyrocket.
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According to the former Goldman Sachs executive, the current interest surge in cryptocurrencies is similar to a surge seen in 2013, which helped the cryptocurrency surge at the time. Anticipating substantial growth for the crypto industry, Pal asserted that Bitcoin will spearhead the way. Nevertheless, he cautioned that such growth will likely be accompanied by augmented regulatory oversight and scrutiny from both governments and financial institutions.
As CryptoGlobe reported, a top cryptocurrency analyst that has gained a large following on social media after accurately calling in January 2018 bitcoin’s 84% decline throughout that year, from over $19,000 to a little over $3,000 in a year-long bear market, has suggested through two charts that there’s potential for Bitcoin to hit $150,000 by 2025.
Peter Brandt, who is one of the world’s most respected classical chartists, has shared charts on the microblogging platform Twitter with his nearly 700,000 followers that suggested $BTC is making an inverse head and shoulders pattern, which could push $BTC to $30,000 by the second quarter of this year.
An inverse head and shoulders pattern is the opposite of the standard head and shoulders pattern. It is used to predict the reversal of downtrends. The pattern is identified when the price of a security reaches a low point, rises, falls again below the previous low point, then rises again, and finally falls a third time but not as low as the second trough.
After the third trough, the price moves upward towards the resistance level at the top of the previous troughs, according to Investopedia.
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- Source: https://www.cryptoglobe.com/latest/2023/03/bitcoin-btc-price-could-rise-to-50000-amidst-financial-crisis-says-former-goldman-sachs-exec/
