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Media attention, trends on social networks and “silly” purchases are signs.
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The total Cryptocurrency market capitalization has increased by 29.8% in 1 month.
The Bitcoin (BTC) and cryptocurrency market is heating up as the price of BTC continues to rise and approaches $100,000. However, far from peaking, renowned analyst Lark Davis argues that the market could continue its ascent, with BTC potentially reaching $250,000.
In a recent video posted on YouTube, Davis lists seven signs which indicate that the “ceiling” of the cryptocurrencies is not yet in sight and that everything points towards an even greater increase in prices.
- The “nonsense” of the market
The first factor is the “nonsense” of the market. Davis refers to the sale and purchase of NFT-non-fungible/” target=”_blank” rel=”noreferrer noopener”>NFT (non-fungible tokens) that reach multimillion-dollar valuations.
“Massive amounts of money flowing into all kinds of other silly NFTs that lost 99% of their value and people paying literally millions of dollars for images of a rock. Yeah, when that kind of thing starts happening, then we’re going to start talking about a cap,” says Davis.
The second factor is the media attention on BTC and cryptocurrencies. The analyst indicates that, although there is currently considerable media coverage about these assets, “collective hysteria” has not been reached which typically marks the peak of a market cycle.
Thus, he predicts that the topic of cryptocurrencies will reach major nighttime programs, as happened during the bullish cycle of 2021. “But this time they are not going to talk about NFT,” Davis clarified. “This time, you’ll see Jimmy Fallon, Stephen Cobar, Jon Stewart and whoever launching their own meme cryptocurrencies. “Memecoins are the NFTs of this cycle,” he said.
The third factor identified by Davis is the PI Cycle indicator, which is “peaking” these days. “The current indicator is definitely more interesting than in previous cycles,” said the analyst.
The indicator, also called Pi Cycle Top, predicts the highest points of market cycles. bitcoin. This index uses the 111-day moving average and a newly created multiple of the 350-day moving average to make projections.
The three cycle experience shows that, when both indicators cross, “the price of BTC reaches its maximum,” according to CoinGlass.
Now, analyst Lark Davis says that, based on current trends, this indicator It won’t be crossed until at least March or April of next year.
“When it happens, don’t fade away, pay attention,” advises the trader. “Now, maybe there’s always a chance that this time it’s a false indicator and then it flashes in the market, and it just goes a lot higher. But this is not even close to being crossed yet, so the ceiling is not even close yet,” he noted.
Davis identified factors that indicate that the cryptocurrency market will remain bullish. Source: YouTube.
In his analysis, Davis identified the Fibonacci pattern as another factor influencing the rise of cryptocurrencies. It suggests that, historically relevant, Fibonacci has been a key predictor in previous cycles.
“Fibonacci basically predicted a ceiling for bitcoin around $65,000 to $70,000, which is exactly where we ended up,” stressed Davis, who then highlighted that the Fibonacci target for BTC is $215,000. with important milestones at $150,000 and $100,000.
Davis is not the only one projecting these prices. Mike Novogratz, CEO of Galaxy Digital, has suggested that, if the United States converted its reserves to bitcoin, the price could reach half a million dollarsas reported by CriptoNoticias.
Furthermore, Standard Chartered bank sees an increase to $250,000 per BTC for next year, and another analyst, Prof_heist, projects a price of $300,000 for the same period.
- Trends in social networks and applications
The next factor seen by Davis is the growing trends in social networks and applications regarding the cryptocurrency market.
He notes that while there is an increase in attention on platforms like Coinbase, this does not necessarily mark the cycle high.
“When you see the Coinbase app ranked No. 1, like in 2017 and 2021, that indicates that the markets are overheated and it’s probably time to take some money off the table,” he said.
- Fear and Greed Indicator
Other factors identified by Davis is the fear and greed index, which is currently at 83 pointsindicating extreme greedwhich, according to the analyst, suggests that “we are not yet at the top of the market.”
“It doesn’t feel like we’re at the top yet. We are not yet. We are in the phase where everyone is a genius. We have a lot more to go up in price. And this index shows how market cycles are likely to develop, because human psychology doesn’t really change that much,” he said.
Davis concludes with a social signal, where people who are not normally involved in cryptocurrencies, such as taxi drivers or doctors, They start asking about what assets to buy.
“When you start to have very general talking points about this and when people who aren’t normally connected to the market start asking you for advice on which dog coins to buy, that’s problematic,” he warned.
These signs, according to Lark Davis, suggest that the cryptocurrency market still has room to grow before reaching its true ceiling, providing investors with insight into what could come in the immediate future. This, remembering that the total capitalization of the cryptocurrency market has increased by 29.8% in just 1 monthand that there is still a way to go.
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