Blockstream CEO Adam Back believes Bitcoin (BTC) is on track to reach $100,000 per coin on or before the halving.
Back confirmed his prediction in one series of tweets on February 28 based on current trends and sentiments within the crypto market.
With the halving just 51 days away, Back’s projection has sparked debate among investors and enthusiasts about the potential for a substantial increase in Bitcoin’s value.
Momentum
Back’s analysis points to a confluence of factors driving market momentum, particularly the liquidation of bears and leveraged shorts, which have been forced out of their positions due to rising prices.
Additionally, he said over-the-counter (OTC) trading desks are running low on coins amid daily buying walls of $500 million or 10,000 BTC of exchange-traded funds (ETFs), indicating intense buying pressure that is driving the market higher could push. fast.
Back also noted a shift in investor behavior, with individuals initially waiting for a price drop and now entering the market for fear of missing out on further gains. This behavior is reflected in the adjustment of profit-taking limit orders, with some investors choosing to remove or increase their sell orders in anticipation of higher prices.
The Blockstream CEO’s prediction matches the view of most Bitcoin proponents – some of whom see Bitcoin rising to $1 million. Meanwhile, more sober predictions call for $150,000 before the end of the year.
Gamma squeeze
Back said Bitcoin typically rises very quickly during bull markets, and the roughly 20% gain over the past two weeks indicates building momentum. He added that it only took eight trades for BTC to hit an ATH, last trading at $57,000.
Back’s reference to a statistic indicating that Bitcoin’s significant price increases typically occur within a shortened time frame each year adds an analytical dimension to the market’s expectations as it approaches new highs.
Back also said he was bullish on MicroStrategy, which now owns more than $11 billion in BTC, because a dramatic increase in Bitcoin’s value has the potential to result in a “gamma squeeze” on the company’s stock.
This sentiment is supported by others in the market, with discussions surrounding the remarkable rise in Bitcoin’s monthly candle – the second highest in its history – and the rapid price movements that have followed historically significant milestones.
With almost two full trades left in February, Bitcoin’s monthly candle still has the potential to be the largest of its lifetime.