Key Points
- Analyst Max Keiser predicts Bitcoin’s rise to $220,000 due to a supply-demand shock.
- Current data shows increasing short-term bearish pressure on Bitcoin.
Bitcoin’s [BTC] recent trading value was $61,512, showing a 1.4% decrease in the past 24 hours but a 6.8% increase over the week.
However, the cryptocurrency market has faced challenges. Data from Coinglass showed that 61,419 traders were liquidated in the past day, resulting in $133.87 million in total liquidations.
Max Keiser’s Bullish Stance
Despite the market’s volatility, Max Keiser, a Bitcoin advocate and former financial journalist, remains optimistic about Bitcoin’s future. Keiser believes that Bitcoin could reach the $220,000 mark due to a “demand shock meets supply shock” scenario, which indicates a tightening of Bitcoin’s supply at a time of increasing demand.
Keiser noted that the decreasing Bitcoin supply on cryptocurrency exchanges, which are hitting all-time lows, signals a potential “supply shortage incoming”. This supply contraction, coupled with growing demand, forms the basis of Keiser’s prediction.
Bitcoin’s Bearish Outlook
However, a closer look at Bitcoin’s daily chart shows the asset gradually breaking structure to the downside over recent months, leading to liquidity accumulation at each structural break.
Data from Glassnode revealed a decline in the number of active Bitcoin addresses and a slowdown in new address momentum, suggesting a potential continuation of the downtrend and indicating bearish pressure ahead.
The recent market correction has led to a decrease in Bitcoin’s supply in profit, shaking investor confidence. This trend indicates the market’s skepticism about an imminent bullish turnaround, despite optimistic predictions from figures like Keiser.
