- Bitcoin primed to hit $100,000, crpto analyst claims, citing the inverse head and shoulders pattern.
- Many experts agree on the general price target.
- PayPal’s crypto-service went international and fueled the rally.
YEREVAN (CoinChapter.com) – Bitcoin could hit $100,000 by the end of the year, predicted a crypto analyst on Twitter, citing a technical setup. The estimated target is 98.5 percent higher than the current BTC/USD exchange rate of 50,355 in the Monday session. The technical design in question is the inverse head and shoulders pattern (IHS).
Inverse Head and Shoulders
In hindsight, the IHS includes a lower low (head), surrounded by two higher lows (shoulders). Indicated with the letters S, H, and S on the chart below, the lows have a common “neckline” (red bar). The neckline is the level where the three parts of the formation originate.
The IHS is a bullish pattern that predicts an uptrend once the token exhausts the formation. The gain could be equal to the distance from the tip of the head to the neckline. This prediction puts the target price for BTC above the $100,000 level. The analyst tweeted his chart on Monday, indicating the beginning of the pattern in March 2021.
According to the chart, the second shoulder is still in progress, and the digital asset is on the way to reaching the neckline to form it.
Albeit technically far-fetched, CryptoWolf’s chart and his target price reflect many opinions in the crypto-verse and beyond.
According to many experts, Bitcoin is “staging a comeback.” Meltem Demirors, the chief strategy officer at CoinShares Jersey-based digital asset investing firm, commented on the possible development.
It’s roaring back. Many investors perceive [the regulatory scrutiny] as positive news and a positive catalyst because it’s clearing up a lot of the confusion or some of the uncertainty. […] The crypto community is no longer some esoteric corner of finance.asserted the analyst.
Other experts were more precise in their predictions, mirroring the $100,000 estimation. For example, Mike McGlone, the head analyst of Bloomberg Intelligence, shared a positive outlook on the future price target for Bitcoin in an interview.
“It’s still got plenty of room to get the old high. And guess what? If it just follows Ethereum, it goes to $100,000,”said Mr. McGlone.
Behind the Bitcoin rally
The alpha crypto is on its way to reclaiming the $1T market cap ($943 billion at the moment). Amis the mining restrictions and environmental concerns, Bitcoin is broadening its integration into the fiat economy. PayPal payment system announced its first international crypto expansion.
Starting next week, customers of PayPal UK will be able to hold, sell and buy crypto assets right from their PayPal wallets. The platform has approximately 3 million users in the UK, out of 403 million worldwide. The UK users will have access to trade Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.
While PayPal UK’s crypto-rival Revolut allows transferring funds in and out of their wallet, PayPal’s crypto-trading feature does not support trading outside of the platform, at least for the time being.
The upcoming months will show if Bitcoin will hit the $100,000 price estimation before the end of the year. However, many experts and analysts are positive on the notion that ‘digital gold’ is “playing the long game.”