Tone Vays says $45,000 to $50,000 is a reasonable bull market target for Bitcoin if it surges past $20,000. Tone Vays, the well-known Bitcoin (BTC) derivatives trader, believes Bitcoin will stay above $10,000 for the rest of 2020.
At the start of the year, Vays said he was skeptical
BTC would break $20,000 in 2021 but now he thinks it’s possible for the
top cryptocurrency to overtake its record all-time high.
If the
price of Bitcoin surpasses $20,000 in the medium-term, Vays said history
shows it tends to double. Based on the historical price cycles, he said
the $45,000 to $50,000 range is a reasonable target.
The historical cycle of the Bitcoin price. Source: TradingView.com
During an interview with IGTV, Vays said:
“Every
time Bitcoin breaks a prior all-time high, especially when it takes
years to break that all-time high, it tends to usually more than double.
So I think $45,000 to $50,000 is a reasonable target.”
Bitcoin price may surge once $20K breaks
Throughout 2020, Vays said Bitcoin would likely stay above $10,000 and gear towards $20,000 the following year. He noted:
“In
the beginning of the year, I thought that even next year would be a
struggle to break $20k. Now I think it's pretty likely that we'll break
$20k next year.”
As on-chain analysts have said
throughout August, the $10,000 area has become a strong support level
for Bitcoin. As long as a key psychological level at $10,000 is intact,
an extended uptrend becomes more likely.
Vays also drew a comparison between Bitcoin and gold. He emphasized that gold broke its all-time high and saw a 5% upside past its previous high fairly quickly.
The
trader explained that Bitcoin could do something similar over the
medium to long-term when it breaks its previous all-time high at
$20,000. He stated:
“We are watching what's happening
with gold right now. Gold finally broke its all-time high, that it made
ten years ago, just recently, and it went already $100 past that. So it
went 5% more fairly quickly. So let's see how fast gold goes up since
breaking all-time high, and Bitcoin can do something similar.”
How far could Bitcoin go?
Various price models predict the price of Bitcoin to reach anywhere between $30,000 to $250,000 in the long-term.
According
to Vays, he would be satisfied if the next top of Bitcoin is at around
$45,000. Historically, Bitcoin has seen a major breakout past its
previous record high, reach a new peak, then correct. A rapid upsurge to
unsustainable price levels could leave BTC vulnerable to sharp drops.
He added:
“Do we think we go as high as $100,000? I'm
not willing to make that statement. For me, I would be happy if the next
top was around $45,000, and that can happen quickly.”
A
consistent theme that supplements the uptrend of Bitcoin is a favorable
global macro backdrop that also complements gold. Fear towards rising
inflation and economic uncertainty could sustain the momentum of
Bitcoin.
source link : https://cointelegraph.com/news/50k-bitcoin-is-reasonable-if-btc-hits-new-highs-says-tone-vays
