Yasin Almanjera, an analyst at the Arc Invest capital management company, Bitcoin growth prediction of 240%, if the price trend of the cryptocurrency market repeats.
Yassine Elmandjra, an analyst at Cathie Wood Ark Capital Management, noted in a Twitter thread that Bitcoin, the largest digital currency, managed to retrace its 200-week moving average.
This event has only happened seven times in history. According to ArkInvest’s calculations, Bitcoin increases by an average of 240% after each event.
Bitcoin growth prediction of 240%
The price of Bitcoin has reached the 200 weekly average 7 times since 2009. Every time Bitcoin hits its 200-week moving average, it will experience a roughly 240% gain.
Elmandjra says that the price of digital currency Bitcoin is now below its cost price.
This also happened during the worst days of the pandemic market selloff in March 2020, after the price of Bitcoin infamously halved within 24 hours.
According to Yasin Almanjera, investors’ willingness to take risks is increasing both in the US stock market and in the cryptocurrency market.
Yasin Almanjera considers the high correlation of the US stock market and cryptocurrencies as a positive sign for Bitcoin.
Almanjera believes that if the cryptocurrency market takes a downward path similar to the crypto winter of 2018, there is a possibility that Bitcoin will fall further.
In 2018, digital gold lost more than 80% of its value. Bitcoin and digital currency are still under the control of Jerome Powell, the head of the US Federal Reserve.
Uncertainty remains
However, Yasin Almanjera does not rule out that if this bear market repeats the bear winter 2018 path, Bitcoin may end up falling. At that time, the top digital currency lost more than 80% of its value within a year.
Bitcoin and digital currencies are still under the control of US Federal Reserve Chairman Jerome Powell. Uncertainty about central bank policy is still the main headwind for the price of Bitcoin, believes Yasin Almanjera.
Currently, Bitcoin is hovering at $23,166.