Lark Davies Weighs Bitcoin’s Chances To Break $100,000 This Year
Lark Davies, a popular crypto trader and market analyst, is looking to the history to see, if Bitcoin (BTC) could break $100,000 this year.
According to Davis, Bitcoin’s current price action is very similar to Ethereum’s 2017 bull run.
“Is there precedent for an asset having a massive run up, then a long brutal corrective period followed by a spectacular blow off top later that year? Yes, of course.
Ethereum did almost [exactly] that in 2017, ended the year 237% higher than the ‘top’.”
Is there precedent for an asset having a massive run up, then a long brutal corrective period followed by a spectacular blow off top later that year? Yes, of course.
Ethereum did almost excactly that in 2017, ended the year 237% higher than the "top"https://t.co/9K7Ay7rK4x
The analyst also shared a chart from fellow crypto analyst Benjamin Cowen that compares return on investment (ROI) in previous crypto cycles.
“I also like this chart from Ben Cowen about Bitcoin cycle ROI. Either this was the shortest cycle with the lowest ROI or we are going to get a pretty spectacular second act.”
If the Fear and Greed Index is of any reference that sentiment among crypto traders has been decidedly negative for the past two months, says Davis.
“Sentiment wise we are very bearish. I can give ample anecdotal evidence from my comment section here and on [YouTube], many are feeling very very pessimistic.
BTC fear and greed index has basically been below 25 for over two months!”
The Fear and Greed Index is currently at 23, while last month it was at 14. The creators of the index say “extreme fear” in the market could indicate traders are overly pessimistic.
According to Davies, Bitcoin and other crypto markets still need a catalyst to spark a new and sustainable rally.
“BUT what we really need is new fuel for the bull engine.
Defi summer 2020 was bull fuel.
Institutions buying was bull fuel in Q4 2020, and Q1 2021.”
