A recent Bitcoin price prediction by a popular crypto analyst, known by the pseudonym TechDev, suggests that Bitcoin could be on the brink of a significant upward surge, provided a specific indicator continues to align with historical data.
Let’s break it down a bit. As The Daily Hodl reported earlier today, the analyst in question goes by the pseudonym TechDev. He’s got a substantial Twitter following of over 416,400 people, and he’s been closely monitoring something called global liquidity cycles. Now, you might be wondering, “What on earth are global liquidity cycles?” Well, in simple terms, they refer to the global flow of money. TechDev examines this by comparing the Chinese 10-year bonds (CN10Y) with the US dollar index (DXY). He’s looking at the relationship between the Chinese and US economies.
But that’s not all. TechDev also compares this metric with the aggregate major central bank balance sheet. This balance sheet tracks the money-printing activities of reserve banks worldwide. It’s like a global money printer status report showing how much new money is being introduced into the global economy.
Now, here’s where it gets interesting. TechDev’s analysis suggests that global liquidity is on the cusp of an uptrend as major central banks continue to expand their balance sheets. And guess what? Bitcoin’s performance seems to mirror these global liquidity trends. This implies that Bitcoin’s price could see a rapid increase in the coming months.
But how much of an increase are we talking about here? Well, TechDev uses a tool known as a logarithmic growth curve (LGC) to predict Bitcoin’s long-term performance. LGCs are designed to estimate Bitcoin’s long-term highs and lows while ignoring short-term volatility. According to TechDev’s LGC, Bitcoin could potentially reach a price range of $100,000 to $140,000 by or before 2025.
At the time of writing, Bitcoin is trading at around $28,896. If Bitcoin reached $140,000, this would represent a 384% price increase. That’s a significant surge that would undoubtedly excite Bitcoin investors.
But wait, there’s more. TechDev also notes that the altcoin market cap chart is experiencing its tightest compression ever. In addition, Bitcoin’s Bollinger bands width (BBW) is slightly above 0.50, which is relatively low. The BBW is a technical analysis tool used by traders to measure market volatility. A low BBW could indicate a period of low volatility, often followed by a significant price move in either direction.
TechDev’s analysis suggests that the last three times Bitcoin’s BBW came close to 0.50, Bitcoin experienced a full-blown bull market. If this pattern holds, we could be on the verge of another significant uptrend for Bitcoin.