Bitcoin's price could double from its current value of $69,000 in just three months, according to analysts' assumption based on a commonly used momentum indicator.
A pseudonymous TechDev analyst told his 440,000 X-watchers that Bitcoin has closed two consecutive months above the upper Bollinger band, adding that every time Bitcoin has done this in the past, its price has doubled over the next three months.
This would mean that by July Bitcoin would have reached a price of around $140,000.
In technical analysis, Bollinger bands are a tool that measures the dynamics and volatility of an asset within a certain range. Typically, when prices touch the upper band, it can indicate an overbought signal, while touching the lower band indicates an oversold asset.
However, Bollinger bands are just one of many technical indicators available to analysts, and according to Investopedia, they are reactive rather than predictive, given their use of past price action and volatility data. Indicators can also vary widely during peak bull and bear market periods.
Meanwhile, SkyBridge Capital CEO Anthony Scaramucci spoke to CNBC on April 6 to predict that bitcoin could reach as high as $170,000 during the cycle and could eventually sell for about half the total value of the global gold market.
