Bitcoin has been at the center of the market’s attention over the last three months, and it’s about to get even more attention.
Over the weekend, Bitcoin ripped through my short-term price target of $65,000 as everyone has the same thing in mind: A simple number, $100,000.
I was surprised to turn on the television on Sunday only to hear a commentator – on a traditional Sunday Morning news show – talking about the recent surge in Bitcoin along with the target of $100,000.
It doesn’t get simpler than this folks…
I’ve shared one of the easiest and impactful rules of investors psychology, the “Rule of Round Numbers.”
Simply put, the more zeros a price has in it, the more sensitive it will be to price inflections.
The market has its eyes on “Bitcoin $100,000,” and it’s going to hit it in short order. Sure, there’s going to be some profit-taking along the way, but at its current rate, Bitcoin is likely to hit that mark by mid- to late-April.
Convenient timing on that, given the expectations that Bitcoin will see another monumental “buy the news / sell the rumor” event in April with the next “halving” of the cryptocurrency.
The last “halving” of Bitcoin was in May of 2020. The cryptocurrency rallied more than 40% in the weeks approaching the halving, then dropped more than 20% after the halving.
Bottom Line
Put simply, the stars and the moons are aligned in Bitcoin’s favor for the next four to six weeks.
The market’s “eyes” on $100,000 as a target - combined with the “Buy the Rumor / Sell the News” potential of the halving - make Bitcoin too good for almost any investor to deny it a spot in their portfolio.
A warning… It’s time to take some profits should prices catapult faster than expected and you and I are talking about Bitcoin $90,000 next week.
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About the Author
Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.