Benzinga - by Khyathi Dalal, Benzinga Staff Writer.
A Bitcoin (CRYPTO: BTC) breakout above all-time highs may prompt a decisive push beyond the $80,000 mark, according to latest analysis from 10x Research.
What Happened: Basing its latest newsletter on the investment philosophy of George Soros, 10x Research draws parallels between Bitcoin's current state and George Soros’s “two opposing theories” concept. This approach allows investors to flexibly respond to changing market conditions by developing hypotheses for either direction and jumping on the one that the market confirms.
The research company highlights its past successful Bitcoin predictions, such as buying in October 2022 and February 2023, and emphasizes that a sustainable narrative is needed to spark a new price rally.
Old, New Narratives
Wall Street buying Bitcoin through ETFs and the Bitcoin Halving hype have become old narratives and 10x Research stresses the need for a new driving narrative to accompany the rally to avoid price consolidation.
The report struggles to identify a marginal buyer and a new narrative, believing that the current shift in U.S. inflation is expected to negatively affect Bitcoin and U.S. tech stocks.
Also Read: Bitcoin Nears $67K: Fresh Highs Within Two Weeks Or ‘A Tired Complacency Bounce?’
Soros Parallels To Bitcoin
Prices must either fall low enough to make Bitcoin cheap again ($52,000/$55,000) or rise above the previous all-time high of $68,330 for 10x Research to turn bullish. They consider this level as their “line in the sand,” where the bullish hypothesis could take over.
Potential bullish narratives to drive beyond $68,330 would be a U.S. debt explosion, higher interest rates as a sign the economy is doing well, the U.S. Presidential Election and the emergence of new narratives like Bitcoin Runes.
Like in Soros’s approach, 10x Research is prepared to switch their mindset if Bitcoin rises above their critical level of $68,330.
Elliot-Wave analysis and flag formation breakouts suggest possible target prices of $81,000 to $83,000. A breakout above $73,000 might qualify as a ‘flag formation.' Although the bullish scenario is not the base case scenario, it can't be ruled out.
What's Next: Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.
Read Next: Bitcoin’s Demand Set To Outpace Supply By Fivefold After Recent Halving: Bitfinex Analysis
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