The price of the flagship cryptocurrency Bitcoin ($BTC) has dropped significantly from a high above the $64,000 mark late last month, to now trade at $57,800 after recovering from a low under the $53,000 mark.
According to a popular cryptocurrency trader that goes by the Titan of Crypto on the microblogging platform X (formerly known as Twitter), the price of Bitcoin has recently retested its 50-week moving average which, over the last few cycles, led to a bounce of “at least 40%.”
The popular analyst added that on average, after retesting the 50-week SMA, the price of Bitcoin bounced 71%, which during the current cycle would mean a price rise to around the $92,000 mark, a new all-time high.
#Bitcoin Rally Imminent? 🚀In previous cycles, when the price retested the 50-week simple moving average 🔴, it bounced at least 40%.On average, the bounce was 71%. If #BTC rallies 71% from here, it could reach $92,000. pic.twitter.com/e3ghGxn3NS
— Titan of Crypto (@Washigorira) September 13, 2024
The post comes after popular cryptocurrency trader and market analyst Michaël van de Poppe revealed he believes that the “current valuation of Bitcoin is still super low,” adding he wouldn’t be surprised if the cryptocurrency’s price explodes to $300,000 to $600,000 this cycle.
His comment came in response to a quote from the world’s largest asset manager, BlackRock, which said that Bitcoin could be a “hedge against increasing global disorder and declining trust in governments, banks, and fiat currencies.”
The world’s largest asset manager saw its assets under management surpass the $10 trillion mark for the first time in the second quarter of the year, after rising 13% from the same period last year and seeing $82 billion of net inflows.
BlackRock’s dominance extends beyond traditional asset management. The company is also the largest public holder of bitcoin through its iShares Bitcoin Trust (IBIT) exchange-traded fund (ETF), which currently holds more than $20 billion worth of the cryptocurrency.
As CryptoGlobe reported, Bitcoin holders have moved around $750 million worth of the flagship cryptocurrency out of centralized exchanges in a single day this week, leading to largest net Bitcoin outflow since May.
Historically, similar outflows have been followed by price increases as often a lower supply on exchanges can lead to a price rise if demand remains steady or rises.
For instance, a significant withdrawal in late May coincided with a rally that propelled Bitcoin’s price from just below $68,000 to $72,000 within days. Conversely, large inflows have often led to price declines, as evidenced by the crash in late July and early August, according to IntoTheBlock’s data.
Featured image via Unsplash.
