Bitcoin Price Analysis: BTC To Reach $146,000? JPMorgan thinks so
Daily Bitcoin BTC Price Forecast
- The price is currently negotiating with the $34,500 resistance line.
- The number of new addresses entering the protocol has risen dramatically between January 1 and January 5.
- The number of addresses holding at least 1,000 BTC has reached an all-time high.
Despite Bitcoin’s ongoing price rally, gold is roughly 4.6 times Bitcoin's current $5.85 billion market capitalization. Still, strategists at JPMorgan Chase bank are forecasting a scenario where BTC outperforms gold soon.
A recent Bloomberg report cited a note from the bank's strategists, led by Nikolaos Panigirtzoglou. In the note, the experts sketched out a path to the total private sector investment in Bitcoin becoming equal to the value that is currently invested in gold via exchange-traded funds or bars and coins. However, this path depends on Bitcoin's volatility converging with gold. In their opinion, this is likely to take some time.
A crowding out of gold as an ‘alternative’ currency implies big upside for Bitcoin over the long term [...] a convergence in volatilities between Bitcoin and gold is unlikely to happen quickly and is in our mind a multiyear process. This implies that the above-$146,000 theoretical Bitcoin price target should be considered as a long-term target, and thus an unsustainable price target for this year.
Bitcoin has been quite volatile even within its recent price rally. Nonetheless, the strategists identified strong positive signs for the cryptocurrency, pointing to an accumulation of speculative long positions. Yet, they warned that reading the investment landscape in the medium-term remains difficult:
The valuation and position backdrop has become a lot more challenging for Bitcoin at the beginning of the New Year [...] While we cannot exclude the possibility that the current speculative mania will propagate further pushing the Bitcoin price up toward the consensus region of between $50,000–$100,000, we believe that such price levels would prove unsustainable.
Bitcoin’s Liftoff To $40,000
Bitcoin rose from $18,000 on December 12 to $34,500, nearly doubling itself in valuation. As of now, the premier cryptocurrency is negotiating with the $34,500 resistance barrier. Upon successfully navigating it, BTC should be able to reach the $40,000 level.
Image: BTC/USD daily chart
The four-hour chart adds further credence to our bullish outlook. There are two things that you must note here. Firstly, over the last four sessions, BTC has successfully reversed the parabolic SAR from bearish to bullish. This shows that the overall trend of the market is currently buyer-heavy.
Image: BTC/USD 4-hour chart
Along with that, the MACD in the 4-hour chart shows increasing bullish market momentum. This also indicates that more price growth is expected. Finally, when we see the number of daily active addresses entering the network, we can see that it has steadily increased from 445,500 to 601,500 between January 1 and January 5.
This is a very positive sign for the protocol as it tells us that the network is steadily growing and becoming stronger than ever.
Number Of Whales Reaches All-Time High
Santiment, an on-chain analytics platform, also noted that the number of addresses holding at 1,000 BTC or ~$34 million has reached an all-time high of 2,323 as Tuesday’s session came to a close. As Santiment puts it – “There may not be a more notable bullish metric than one pointing to growing holders with $33.7M+ on the line.”
US Banks Can Now Officially Use Stablecoins and Public Blockchains
The US Office of the Comptroller of the Currency (OCC) has recently published additional crypto-friendly guidelines. This will allow greater participation by regulated financial institutions in the digital asset space.
In a recent press release, the OCC discussed its decision to allow Federally chartered banks and thrifts to use stablecoins and public blockchains for banking functions such as payment settlements. The OCC conveyed the news through an interpretive letter outlining all the modalities for banks participating in independent node verification networks (INVN).
As per this letter, any national bank or federal thrift association can run nodes for validating, storing as well as recording transactions on public blockchain networks. The guideline also mentioned that banks can use INVNs and stablecoins for payments as long as the protocols comply with the current industry practices.
Using blockchain networks and stablecoins could potentially increase the efficiency of the federal banking architecture while ensuring payment stability. OCC acting comptroller Brian Brooks said:
Our letter removes any legal uncertainty about the authority of banks to connect to blockchains as validator nodes and thereby transact stablecoin payments on behalf of customers who are increasingly demanding the speed, efficiency, interoperability, and low cost associated with these products.
This is extremely bullish for the cryptocurrency market.
Key Price Levels To Watch For BTC
As of now, we need to see how the price reacts at the $34,500 psychological level. Upon successfully negotiating this, the price should reach the $40,000 level. However, if the price falls, the 20-bar SMA in the 4-hour chart ($33,000) needs to hold strong to keep the price in the $30,000 zone.