Bitcoin will rise to $220,000 based on a power function and comparison with gold.
To continue growth, it is necessary to overcome the liquidity cluster in the range of $105,000-110,000, support is located in the area of $98,000-100,000.
By the end of the year, Bitcoin will rise to $220,000 or higher if the correlation of the first cryptocurrency with gold is maintained.
The analyst's forecast is based on the valuation of Bitcoin in ounces of precious metal and its reflection through a power function, considering the cyclical nature of the asset.
According to him, the peg to the US dollar distorts the real value due to the inflation inherent in fiat currency. The idea is that the value of gold should offset the decline of the USD in real terms.
According to Apsk32's calculations, the current market capitalization of the first cryptocurrency is 643.02 million ounces.
Historically, BTC/USD quotes follow XAU/USD with a lag of several months, the expert noted. The recent rise of gold to a record $3,500 creates a 'very optimistic' future for the first cryptocurrency.
The modeled values in the power function correspond to Bitcoin's peak in 2017 at $20,000. Year-end calculations give a target of $444,000, but the analyst believes it is 'more reasonable' to prepare for $220,000.
'Above $250,000 will be above expectations,' commented the specialist.
Analyst Sam Callahan suggested evaluating Bitcoin based on the ratio of the market capitalizations of the first cryptocurrency and gold. His matrix showed growth to $924,000 by 2030 if the mentioned value rises to 50% and the price of the precious metal reaches $5,000.
Material Indicators specialists explained the halt in Bitcoin's growth on the approach to $105,000 due to large liquidity clusters from the specified mark to $110,000.
