- Bitcoin’s stability might soon give way to a sharp rise, potentially reaching US$265K as suggested by CryptoQuant’s CEO.
- Retail investor numbers are down from 2021, hinting at delayed growth but low altcoin prices offer investment opportunities.
- Santiment data shows many top cryptocurrencies, including ADA, are in buy zones, indicating potential undervalued buys.
While Bitcoin has been trading in a more or less steady range for the past week many investors ask themselves where BTC price is heading in the medium term. Ki Young Ju, founder and CEO of analytics platform CryptoQuant, believes that we are going to see a potentially sharp upwards trend.
In a recent post, he said, “network fundamentals could support a market cap three times its current size compared to the last cyclical top” which could lead the largest crypto by market cap to reach an impressive US$265K (AU$403K).
While Ju didn’t provide a time frame for the price target, one metric might suggest that it’s going to take a little while to get there.
Related: Bitcoin ‘God Candle’ Could Skyrocket Value to $220K, Predicts Advocate Max Keiser
Analyst Michaël van de Poppe said retail investors haven’t shown up to crypto yet. He cites data showing that compared to the first quarter of 2021, retail numbers in 2024 are far lower.
Altcoin Buying Season Upon Us?
Yet, he doesn’t think this is necessarily bad because it means many altcoins are at discounted prices.
And it’s not just van de Poppe who believes this is a good time to consider an investment in alts. Data from market intelligence platform Santiment suggests that the Relative Strength Index (RSI) supports the theory.
The RSI is a technical analysis tool that measures momentum by calculating recent price changes to assess if an asset is overbought or oversold. It evaluates price movements over a typical period of 14 days and assigns a value between 0 and 100.
According to Santiment, the RSI indicates that the majority of cryptocurrencies with the highest market capitalisations are currently in slight buy zones.
This suggests that these cryptocurrencies may be slightly undersold, which can often be a signal for investors to consider buying if they are looking for potentially undervalued assets that might increase in value soon.
ADA a Buy Low Opportunity, Santiment Suggests
Among these cryptocurrencies, the analysts point to Cardano (ADA) as a “buy low” candidate, indicating that its RSI values are perhaps well below the typical threshold of 30.
According to the analysts, this significantly undersold status might suggest that Cardano is currently trading at a price lower than its intrinsic value, making it an attractive opportunity for investors looking to purchase at a low before a potential price increase.
At the time of writing, the number ten crypto by market cap is up 4% on the weekly time frame, currently trading for US$0.46 (AU$0.69).
Get the most important crypto news delivered to your inbox by subscribing to the CNA newsletter
Credit: Source link
