- Bitcoin price could breakout, analysts predict limited upside to $45,000.
- Do Kwon, the founder of Terra, hinted at the purchase of $3 billion worth of Bitcoin to maintain the protocol’s reserves.
- Willy Woo, an on-chain analyst, argues that the current cycle may be the last one after three relatively short bull and bear markets.
Bitcoin price could break into an uptrend with rising demand for the asset among investors. Do Kwon, the founder of Terra, revealed that there could be a purchase of $3 billion in Bitcoin to fund the project’s reserves.
Bitcoin price prepares for rally as demand rises
Bitcoin price has limited upside potential, according to analysts but Do Kwon, the founder of algorithmic stablecoin protocol Terra, hinted at a future purchase of $3 billion worth of Bitcoin. This purchase, used to fund the reserves of the Terra protocol, could fuel a more bullish narrative for the lead crypto.
Do Kwon shared the information with Bitcoin enthusiast Udi Wertheimer in a recent Twitter space. Do Kwon explained the Terra ecosystem’s new mechanics to use Bitcoin as collateral for its stablecoin UST.
A purchase of $3 billion in Bitcoin is the equivalent of nearly 72,804 BTC. Proponents believe this could fuel demand for Bitcoin and positively influence the asset’s price.
On-chain analysts have evaluated the Bitcoin price trend and predicted the end of bull and bear markets in a cycle. A crypto analyst and trader, Willy Woo, put forward his thesis, “The Last Cycle,” in which he argues for the end of repeating four-year patterns. Woo believes that halving was the driver of Bitcoin price cycles and active distribution that follows halvings dictated the bull and bear markets.
We're likely seeing the first signs of "The Last Cycle" thesis playing out. 3 relatively short bull and bear markets have transpired since the 2019 bottom already.
— Willy Woo (@woonomic) March 20, 2022
i.e. No more 4 year cycles. https://t.co/N3VzlKx2IA
FXStreet analysts believe Bitcoin price is ready to breakout; however, the asset’s upside potential is capped at $45,000. Analysts note that from an Ichimoku perspective, Bitcoin price is approaching a thin cloud on the chart. This could be the easiest time for Bitcoin to move into an ideal bullish Ichimoku position and recover from its drop.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.