Bitcoin’s price surge may not be enough to reach record highs just yet. According to BCA Research, a fractal pattern analysis tool, the cryptocurrency’s ultimate target could be as high as $200,000.
The 260-day fractal dimension complexity metric, which measures patterns in bitcoin’s price changes, remains above 1.20 – a threshold that signals bull market peaks at lower levels. However, BCA Research suggests that a drop below this level could indicate prices exceeding $200,000.
This analysis is based on the quantification of fractals’ dimensionalities and identifies recurring patterns in financial markets. A higher complexity reading means difficulty interpreting price trends, making market movements more unpredictable.
BCA Research notes that bitcoin’s network effect has substantial upside potential, driven by rising global wealth and the growing value of non-confiscable assets like gold and bitcoin. The team believes that as certain portions of total wealth are allocated to these assets for insurance against inflation and financial instability, prices will increase.
Despite recent market gains, BCA Research maintains that a near-term retracement is likely, but the cryptocurrency’s structural uptrend remains intact with an ultimate destination potentially above $200,000.
Source: https://www.coindesk.com/markets/2024/11/18/bitcoin-near-a-record-high-might-be-just-half-the-journey-as-bca-research-signals-200k