Market expert predicts Bitcoin surge to $100,000 in 3 months
Bitcoin's (CRYPTO:BTC) price has struggled to regain its momentum after a sharp drop earlier this month to $49,000.
On Wednesday, Bitcoin traded at $58,700, but concerns of another downturn, similar to the August 5 crash, continue to worry investors.
Market expert Timothy Peterson has highlighted a key indicator that could provide insight into Bitcoin's future price movement over the next three months.
He noted that the relationship between high-yield bonds (HYG) and Bitcoin's price could be a crucial predictor.
According to Peterson, when Bitcoin is undervalued compared to HYG, it tends to outperform in the following three months.
Conversely, if Bitcoin is overvalued relative to high-yield bonds, a potential decline might be imminent.
A report from Cane Island Digital Research shows that the current HYG/BTC ratio stands at 25%, suggesting a possible 60% increase in Bitcoin’s price over the next three months.
If Bitcoin remains around $60,000, this prediction could push its value to approximately $109,000 by November.
Market research firm CryptoQuant has also analysed the current price stagnation.
They point out that a resistance level has formed as short-term holders sell at their break-even points.
After a 20% decline earlier this month, many short-term holders, who were sitting on losses, decided to sell as prices approached their cost basis, creating further resistance and contributing to the current stagnation.
The firm also highlighted that open interest in Bitcoin futures rose from $13.5 billion to $17.9 billion since August 5, indicating heightened speculation among traders.
However, with long liquidations hitting $90 million on Wednesday, marking the highest level since early August, the market remains volatile.
CryptoQuant warns that these conditions could lead to more instability in the days ahead.
At the time of writing, the Bitcoin price was $59,185.38.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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