Benzinga - Cryptocurrency analyst Caleb Franzen, founder of Cubic Analytics, suggested that Bitcoin (CRYPTO: BTC) could potentially reach a high of $180,000. This prediction is based on a new bull signal that hints at a repetition of historical gains.
What Happened: Franzen revealed that the Bitcoin Williams%R Oscillator, a tool used to measure the strength of price trends, is flashing a rare bull signal for only the fourth time in history.
According to Franzen, Bitcoin just completed its highest monthly close since October 2021. The 36-month Williams%R Oscillator has closed above the overbought level for the fourth time in history, a signal that has previously appeared in 2013, 2016, and 2020.
These years marked the early stages of a Bitcoin bull market. Although the bull runs have shrunk in size each time, Franzen suggests that even if Bitcoin price returns match the 2020 gain of 260%, it would result in the King Crypto hitting the $180,000 price.
See Also: Bitcoin Could Hit New All-Time High Ahead Of Halving Event, Says Crypto Analyst: ‘Going To Send The Prices Even Higher’
"Maybe this time is different and the ETFs have changed crypto market dynamics, but I think that market psychology will repeat the same way that it always has," he said.
However, Franzen warns that these unusual events should not be seen as a guarantee of future performance.
"This study guarantees nothing. It simply tells us how market participants have behaved in the past when investor behavior was similar from a statistical perspective."
#Bitcoin just completed the highest monthly close since Oct.'21, but it gets even better & more bullish… The 36-month Williams%R Oscillator just closed above the overbought level for the 4th time in history.#BTC returns after prior signals:• Feb.'13 = +3,900% in 9 months
•… pic.twitter.com/MvVLObNezV
— Caleb Franzen (@CalebFranzen) March 1, 2024
Why It Matters: Franzen’s prediction aligns with recent bullish sentiments in the market. Alex Thorn, Head of Research at Galaxy Digital, predicted a new all-time high for Bitcoin within weeks, attributing the surge to an influx of institutional investments.
Similarly, veteran prop trader Peter Brandt suggested that Bitcoin’s unprecedented $20K monthly gain could be a “starting” candle leading to much larger gains.
Bitcoin’s recent rally to $64,000, its highest point since November 2023, was also lauded by bestselling author Robert Kiyosaki, who credited Bitcoin for "kicking the fake US dollar’s b*tt."
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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