Analyst Predicts Bitcoin Could Reach $265,000, Suggests Altcoin is a Good Buy

• Bitcoin’s stability could soon give way to a sharp rise, potentially reaching $265,000, as suggested by CryptoQuant’s CEO.
• The number of retail investors is down compared to 2021, suggesting delayed growth, but low altcoin prices offer investment opportunities.
• Santiment data shows that many major cryptocurrencies, including ADA, are in buy zones, indicating potential undervalued buys.

While Bitcoin has been trading in a more or less stable range over the past week, many investors are wondering where the price of BTC will head in the medium term. Ki Young Ju, founder and CEO of analytics platform CryptoQuant, believes we will see a potentially strong uptrend.

In a recent sendstated, “network fundamentals could support a market capitalization three times its current size from the last cyclical high” which could lead to the largest cryptocurrency by market capitalization reaching an impressive US$265,000 (403,000 AU$).

Bitcoin price relative to hashrate/market capitalization ratio, source: CryptoQuant

While Ju didn’t provide a time frame for the price target, one metric could suggest it will take some time to get there.

Related: Bitcoin’s ‘God Candle’ Could Reach $220,000, Lawyer Max Keiser Predicts

Analyst Michaël van de Poppe said retail investors have not yet warmed up to cryptocurrencies. He cites data showing that, compared to the first quarter of 2021, retail sales numbers in 2024 are much lower.

Is Altcoin Buying Season Upon Us?

However, he doesn’t think this is necessarily bad because it means many altcoins are at discounted prices.

And it’s not just van de Poppe who believes this is a good time to consider investing in alternatives. Data from market intelligence platform Santiment suggests that the Relative Strength Index (RSI) supports the theory.

The RSI is a technical analysis tool that measures momentum by calculating recent price changes to evaluate whether an asset is overbought or oversold. It evaluates price movements over a typical 14-day period and assigns a value between 0 and 100.

According to Santiment, the RSI indicates that most cryptocurrencies with the largest market capitalizations are currently in light buying zones.

This suggests that these cryptocurrencies may be slightly undersold, which can often be a signal for investors to consider buying if they are looking for potentially undervalued assets that could increase in value soon.

ADA for a low buying opportunity, suggests Santiment

Among these cryptocurrencies, analysts point to Cardano (ADA) as a “buy low” candidate, indicating that its RSI values ​​are perhaps well below the typical threshold of 30.

According to analysts, this undersold status could suggest that Cardano is currently trading at a price below its intrinsic value, making it an attractive opportunity for investors looking to buy at a low price before a potential price increase.

At the time of writing, the number ten cryptocurrency by market capitalization is up 4% on the weekly period, currently trading for US$0.46 (S$0.69).

Cardano (ADA), weekly chart, source: CoinMarketCap

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