• Analysts have predicted the possibility of BTC breaking out and growing to the level of $75,000 to $80,000.

• Rising investor demand is supporting this outlook, but increasing leverage could be a significant risk.

Bitcoin [BTC] price charts have hinted at a possible change in market structure, signaling a potential breakout from the $50,000 to $72,000 price range that has lasted since March.

According to analyst Stockmoney Lizards, a breakout from this range is likely in the next two weeks. If true, the analyst predicts that BTC could reach $75,000 to $80,000 if the recent drop below $60,000 proves to be a higher low.

“If this higher low is confirmed, we will break this resistance within 2 weeks. Next target is $75,000 to $80,000.”

Source: Stockmoney Lizards

To put things into perspective, BTC has been consistently making higher lows since August, a price trend that suggests a potential change in market structure, especially if a higher high is established.

Rising demand faces potential risks

Investor interest in the world’s largest digital currency has also shown positive signs, suggesting a slow but steady recovery in demand in Q4 compared to Q2 and Q3.

To put things into perspective, demand for BTC has been negative since May, with sales outpacing purchases. However, CryptoQuant noted that the pace of this imbalance has slowed.

Source: CryptoQuant

Indeed, apparent demand for BTC measured over the last 30 trading days has shown that investor demand is at levels seen in May.

About 150,000 BTC, worth about $9.4 billion, were snapped up by investors between late September and mid-October.

Source: CryptoQuant

Therefore, if this pattern expands over the next two weeks, increased demand could support the Stockmoney Lizards breakout forecast.

However, the increase in leverage, represented by the increase in “Open Interest” (OI), also poses a potential pitfall for breakout expectations.

For those unfamiliar, increased leverage means speculators have taken on greater risk by borrowing money to open BTC positions in Futures markets.

According to Glassnode, the weekend surge from $58,900 to $63,400 has caused some shorts to stop ($2.5 billion in OI).

Source: Glassnode

However, the analytics firm also noted that the drop in OI did not surpass 5%, a level that has historically seen a sustained BTC rally if reached.

In short, high volatility and liquidation risk from both sides of the price direction can derail expectations of a breakout.

Meanwhile, BTC is priced at $62,800 and is consolidating below the 200-day Moving Average at the moment.

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