Analyst Warns Bitcoin Needs To Escape Velocity For $200K Target

Key Insights:

• Peter Brandt suggests that the Bitcoin price may struggle to reach $200,000 without a strong breakout.
• Michael Saylor believes Bitcoin might hit $5 Million per coin, while others doubt it will hit $200K soon.
• The rise in Bitcoin’s leverage ratio suggested that traders leverage borrowed money to strengthen their positions.

Recent Bitcoin (BTC) price action has raised concerns among analysts about its long-term trajectory. According to veteran trader Peter Brandt, the leading coin must break through key resistance levels to sustain its upward momentum.

Without a strong breakout, Bitcoin price may struggle to reach the $200,000 mark before the end of the decade.

Bitcoin Faces Resistance at Key Levels

Bitcoin has faced several movements over the past few weeks. Moving ahead, traders are waiting for a proper breakout.

It suddenly increased to $97,600 on Friday as economic data showed less demand. This occurred as U.S. retail sales fell short of analysts’ projections. Later, the price fluctuated around $96,400. This confirmed the weak movement of the market.

Brandt stated that Bitcoin price is unlikely to reach $200,000 by 2030. It is only feasible if the token overcomes its upper parabolic resistance level, which indicates escape velocity.

Weekend Trends Raise Questions About Market Behavior

Bitcoin had declined for four weekends in a row, which analysts consider as quite odd. According to Standard Chartered’s Geoff Kendrick’s fundamental analyses, price fluctuations were more noticeable on Mondays in 2024. On the other hand, relatively large fluctuations occurred on Fridays.

Nevertheless, fresh trends indicated traders may be cutting back their positions ahead of the coming weekend. This is likely due to increased market volatility.

In addition to this issue, the following U.S. Presidents Day will threaten thin trading, leading to high volatility. Some traders are, however, still reserved in the short-term outlook for cryptocurrency, primarily before entering massive trades.

Michael Saylor Predicts Bitcoin Could Reach $5 Million

While some experts are skeptical about possibly attaining $200K per BTC soon, others are more optimistic. Michael Saylor, the co-founder of MicroStrategy, recently predicted that Bitcoin could reach $5 Million per coin.

He said there were three major reasons behind this. That includes approval of a Bitcoin ETF, banks extending Bitcoin custody and lending, and correct accounting for Bitcoin in corporate balance sheets.

This has been witnessed recently by Abu Dhabi’s sovereign wealth fund report. That showed it purchased $436.9 Million of BlackRock’s spot Bitcoin ETF in Q4 2024.

According to Saylor, the star coin is set to displace gold in the market. This is because people seek products to invest in during this inflationary period.

Bitcoin price movement has exhibited consistent price appreciation. However, regulations and institutions embracing cryptocurrency can stabilize and even magnify this.

High Leverage Ratio Signals Risk in the Market

Based on CryptoQuant data, the leverage ratio of Bitcoin has increased and reached the highest level in a year. It was equal to 0.26. This indicated that traders leverage borrowed funds more to improve their positions.

However, it may allow for greater profits if the token dramatically fluctuates in its favor. This may also adopt this approach and raise the chance of significant losses in case of an unfavorable market turn.

Nonetheless, current liquidation levels remain relatively low compared to previous severe market downturns. Some differences are not necessarily bad. At the same time, some experts argue that these might signal that traders are being more careful with risk.

However, market volatility continues to be a significant issue. The concern rises especially in light of the inability of Bitcoin price to rise above the $100,000 resistance level.

When writing, Bitcoin traded slightly below $97,000. Furthermore, experts are unclear what the market will do next. Some people believe that retail demand will help the price grow again. On the other hand, a new resistance level might cause a new round of consolidation.

Disclaimer

In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.

Olivia Stephanie

Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.