technical analysis bitcoin

Bitcoin (BTC) Undervalued, May Be Worth $356,000 by 2022: Pantera Founder

Avatar Dalmas Ngetich 4 months ago
  • Bitcoin (BTC) prices reacting from $9,500
  • Dan Morehead of Pantera Capital projects price to hit $356,000 by 2022

Pantera Capital’s founder, Dan Morehead, in a podcast, said Bitcoin is growing at a compound annual rate of 235 percent. At this pace, BTC’s would be worth $42,000 by the end of the year. Meanwhile, prices are relatively calm, up roughly two percent in the last day.

Bitcoin Price Analysis

Fundamentals

By acting as money and a settlement layer, Bitcoin is a topic of discussion amongst politicians. All the same, considering the receptiveness of governments toward blockchain, the underpinning technology of Bitcoin, fund managers are noticeably bullish.

Of the many, Dan Morehead, the founder of Pantera Capital, is optimistic of Bitcoin’s future. Not only does he say scalability, a persistent problem for Bitcoin and other public chains, will be resolved as the network grows, but he encouragingly adds that BTC prices would increase more than ten-fold in the next three years.

In one episode of the Unchained podcast, aired on July 23, he said:

“Graph the price of Bitcoin logarithmically […] its trend is going to grow at 235% compound annual growth rate and […] that put Bitcoin at $42,000 at the end of 2019. And I know this sounds crazy, but we’re essentially halfway back there. […] I think it’s a good shot that by the end of the year we hit that. And if you just extrapolate that line out for another year, it’s $122,000 per Bitcoin and then one more year, $356,000.”

Candlestick Arrangement

Bitcoin BTC

Presently, BTC is back to green, adding 1.9 percent in 24 hours. Interestingly, prices are reacting from $9,500, a significant support level.

In a clear bullish trend, risk-off traders can nonetheless liquidate the asset on every high as long as prices are trending below $11,200. This line of thought is because $11,200 is the next resistance line. The level marks the upper limit of the two conspicuous bear candlesticks of July 14 and July 16.

Besides, BTC prices are trending inside July 16 candlestick. From an effort versus result point of view, sellers have the upper hand. Therefore, unless there are upswings, lifting BTC above $11,200, bears have the upper hand.

Upon breakout, mirroring the superb gains of Q2 2019, BTC would easily float back to $14,000 or better, in days ahead.

Technical Indicators

As such, July 16 bear candlestick is leading this trade plan. Aforementioned, the breakout above $11,200, reaffirming buyers of July 14, ought to be with high trading volumes above 43k.

In such an eventuality, the first bull target will be $15,000, and later $18,000. Conversely, steep losses below $9,500 would trigger a collapse to $7,500.

Chart courtesy of Trading View. Image Courtesy of Shutterstock

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