Bitcoin May Face 4-5 Month Consolidation: Capriole Investments' Charles Edwards Predicts
Summary:
Charles Edwards, founder of Capriole Investments, forecasts a potential consolidation period for Bitcoin (BTC) price for up to five months based on trends in stocks and crypto markets. By comparing Bitcoin's price trends with gold, he suggests the possibility of a familiar 'cup and handle' pattern. Edwards points out Bitcoin’s Supply Delta and 90-Day Coin Days Destroyed metrics have peaked, indicating the middle of the current cycle. Meanwhile, he also mentions the continual risk-averse sentiment represented by the Capriole Bitcoin Macro Index. ARK Invest's analysis supports Edwards' bullish view on Bitcoin's long-term prospects.
Capriole Investments' Charles Edwards forecasts a possible 4 to 5 month consolidation period for Bitcoin (BTC) price, based on stock and crypto market trends and Bitcoin on-chain data. His recent study reveals Bitcoin's persistent fluctuation within the upper cycle range, between $58,000 to $65,000, with $58,000 as its ongoing weekly closing, which bolsters the chance for a sustained long-term trend. Edwards paralleled Bitcoin's price flow with gold, which formed a gigantic 'cup and handle' design over the span of 13 years, with four years forming the 'cup'. This comparison indicates that Bitcoin might replicate this pattern. It is thus feasible that BTC hang around the upper range for a span of 9 months forming a 'cup' before advancing upwards. According to Edwards, if Bitcoin maintains its position above $58K, it will likely culminate into a familiar 'cup and handle' formation which is typically a precursor to a significant price surge. Edwards also notes, however, that Bitcoin’s Supply Delta and 90-Day Coin Days Destroyed (CDD) have already peaked, a key indicator Capriole uses to identify cycle summits. Edwards concludes that we can anticipate several months of stagnant fluctuation and instability prior to resuming the trend. The Capriole Bitcoin Macro Index, monitoring over 50 BTC on-chain and macro market factors, indicates BTC as being 'risk off' or risk-averse. Nevertheless, majority of other metrics imply potential headway for this cycle. In confirmation to Edward's interpretation, ARK Invest concurs about Bitcoin's continual optimism and how the previous halving occurrences have laid the groundwork for BTC’s long-term progression. Even though expecting a 3x Bitcoin price surge just a year after halving might be overly positive, it still annotates the reduced availability of Bitcoin over an extended timeframe. If the halving cycle proceeds as anticipated, Bitcoin's price is likely to accelerate exponentially, peaking between $180,000 to $200,000, should there be a 3X price increase. This narrative doesn't include investment counsel or recommendations. Any investment or trade activity entails risk, hence readers are encouraged to carry out individual research before committing.
Published At
5/16/2024 9:05:25 PM
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