TLDR
- Bitcoin traders predict the next price top could be between $95,000 and $120,000
- Bitcoin’s hash rate is approaching an all-time high, indicating miner confidence
- Miner profitability is improving, potentially reducing selling pressure
- Analyst Willy Woo predicts Bitcoin could eventually reach $700,000 if it captures 3% of global wealth assets
- Bitcoin adoption is currently at 4.7% and may reach 16-50% for major price increases
As Bitcoin’s price hovers around $64,000, traders and analysts are speculating about its next potential price top. Some predict Bitcoin could reach between $95,000 and $120,000 in the near future.
Crypto trader Mikybull believes Bitcoin is “getting ready for the next wave of rally which will bring it to $120k+ level.” Meanwhile, analyst Mags expects a more conservative target of $95,700, based on technical chart patterns.
BTC is still trading within a descending broadening wedge pattern.
The price is consolidating near the upper resistance line, a breakout could lead to a massive upside rally.
The technical target for this pattern is $95,700. pic.twitter.com/q35KSaMwGl
— Mags (@thescalpingpro) July 31, 2024
For Bitcoin to confirm its next upward move, popular analyst Rekt Capital suggests it needs a weekly close above $71,500. However, he notes that Bitcoin may consolidate for several more weeks before making a significant move.
The cryptocurrency faces resistance at $67,000 and $67,500. If Bitcoin breaks above these levels, it could trigger substantial liquidations of short positions. Data from CoinGlass shows that a move above $67,000 would liquidate over $940 million worth of cumulative leveraged short positions.
On the mining front, Bitcoin’s hash rate is approaching an all-time high, signaling renewed confidence among miners. This comes after a period of difficulty for miners, when some were forced to shut down operations due to lack of profitability.
The improving hash rate is contributing to increased miner profitability. According to data from CryptoQuant, miners have transitioned from being “extremely underpaid” to “underpaid.” This shift could reduce selling pressure on Bitcoin, as miners may not need to sell as much of their mined Bitcoin to cover operational costs.
Looking further into the future, on-chain analyst Willy Woo has made a bold prediction about Bitcoin’s potential value. Woo suggests that if Bitcoin captures 3% of global wealth assets, it could reach a price of $700,000 per coin.
Woo bases this prediction on the total value of global wealth assets, estimated at $500 trillion. He argues that a 3% allocation to Bitcoin is a “sensible allocation” based on current recommendations from wealth management firms.
However, Woo notes that this price target depends on Bitcoin adoption reaching between 16% and 50% globally. Currently, Bitcoin adoption stands at 4.7%, according to Woo’s estimates.
Nobody knows what the ultimate price of #Bitcoin will be but simple maths can give us an upper bound. All wealth assets is $500T, if BTC captured all of this (never gonna happen) it's $24m per coin (today's value before future inflation adjustment).
The question is what will be…
— Willy Woo (@woonomic) August 1, 2024
The analyst uses an adoption S-curve to compare Bitcoin’s potential growth to that of the internet. This model is often used to track how quickly people adopt new technologies.
Woo also speculates that once Bitcoin’s market cap exceeds all fiat currencies, investors may shift their focus to investments that can outperform Bitcoin. He suggests that companies storing their profits in Bitcoin, like MicroStrategy, could be attractive to investors in this scenario.
In the short term, traders are watching key resistance levels and waiting to see if Bitcoin can sustain a weekly close above $71,500. Meanwhile, the improving situation for miners could potentially provide some stability to the market.
