Bendik Norheim Schei, the head of research at Arcane, told Barron’s that Bitcoin price could target $25,000 if they surpass the $22,500 level. At the time of writing, BTC is changing hands at $20,210.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin Price Could Eye $25,000 Next
Vetle Lunde, the analyst at Arcane, believes that Bitcoin, the largest cryptocurrency by market capitalization, might experience extreme volatility shortly. Lunde has noted that Bitcoin’s current volatility is very low, which should not last much longer. Now that traders have managed to build up leverage during a prolonged period of range-bound trading, there will be a major bout of volatility in either direction, according to the analyst.
So far, bulls have managed to successfully defend the lower bound of the range, not letting Bitcoin slip below the $18,000 level. This means that this robust support level is likely safe, even though bulls are not out of the woods yet.
The Bitcoin price recently reclaimed the $20,000 mark because of the two-day gaining streak recorded by U.S. equities. However, it has now slipped below that pivotal price level due to the benchmark stock market indexes trading in the red once again. Image by tradingview.com After a sharp two-day rally, equities gave up some gains, pushing crypto prices down.
For now, traders are waiting for the U.S. Labor Department to release nonfarm payroll numbers that could give markets more clues about the U.S. Federal Reserve’s pace of rate hikes for the remainder of the year. The Fed is widely expected to announce another 75-basis-point rate hike next month and top this off with another increase in December.