PrimeXBT research: Analysis of Bitcoin, Ethereum, and other leading Cryptos
The Cryptocurrency market is maturing. Demand for Bitcoin is growing due to the launch of ETFs and interest in the coin as a hedge against inflation and as a way to opt out of the current highly controlled and centralised monetary system. Ethereum is right behind BTC, with its network and use-cases growing by the day. Many other altcoins are also showing incredible promise in the realm of AI, decentralised data, GameFi, and much more.
There is now no denying that the digital asset class is here to stay. But how much might the nascent industry grow in the near term? PrimeXBT, a global crypto broker, has revealed its latest Crypto price predictions for Bitcoin, Ethereum, and others. Let’s find out what to expect from the Cryptocurrency market in the near term.
Historical performance and future potential
For over a decade, the Cryptocurrency market was struggling to find its place in the financial world. Compared to the stock market, currencies backed by nations, government bonds, and ages-old commodities like Oil, Gold, and Silver, Crypto lacked a proven track record and proper use case. Over time, however, that has changed dramatically.
In those early days, Bitcoin rallies produced 70,000%, 10,000%, and 2,000% returns. Ethereum rallies brought over 200,000% and 5,500% returns for early adopters. Other coins such as Dogecoin, have performed even better. Despite the law of diminishing returns holding back cryptocurrencies from similar record-breaking performance, looking ahead, these often finite digital assets could still significantly appreciate in price.
Price prediction tools
Cryptocurrency analysts employ a wide range of tools, practices, and equations to predict the price of Bitcoin, Ethereum, and others accurately. These range from building models to performing fundamental or technical analysis. Over time, many models, such as Bitcoin’s now infamous stock-to-flow model, have failed to yield the expected results.
Each coin has unique features and attributes, making fundamental analysis more challenging for pricing Cryptocurrencies. Due to these factors, technical analysis can provide a better chance of accurately forecasting the future price of many coins. Technical approaches rely on existing price data and precise measurements, or the use of Fibonacci extensions. Fibonacci extensions are based on proven Elliott Wave relationships and mass crowd psychology, making them among the most reliable methods for finding price targets. However, keep in mind that these are still just predictions and these targets might not be reached due to the high volatility of the nascent Crypto market.
Bitcoin price prediction: $173,000+
Bitcoin is the oldest Cryptocurrency and the largest by market cap. It is often referred to as digital Gold. Wouldn’t it be interesting then if the golden ratio of 1.618 worked as a way to find price targets in BTCUSD? The 1.618 Fibonacci extension has worked like a charm in the past, perfectly predicting where the 2021 rally would top out when drawn from the 2017 swing high to the 2018 swing low.
When using the Fibonacci extension tool drawn from the 2021 swing high to the 2022 swing low, a cycle high of over $173,000 per coin is potentially possible. At current levels, that’s more than a 200% return on investment.
Ethereum price prediction: $9,700+
Could Ethereum reach nearly $10,000 per ETH in the future? That’s exactly what Fibonacci extensions are possibly suggesting. In previous cycles, Ethereum has outperformed Bitcoin. However, all throughout this current Crypto market cycle, Ethereum has lagged behind Bitcoin. The current price target of Ethereum could indicate that this laggard relationship continues, leaning towards overperformance in BTC.
Using the same Fibonacci extension tool drawing from the 2017 ETHUSD swing high to the 2018 swing low, a projected 1.414 Fibonacci extension target was reached. That same 1.414 Fibonacci price target drawn from the 2021 swing high to 2022 swing low projects a target for this cycle of $9,700 per ETH.
Solana price prediction: $9,700+
Solana and Ethereum are competitors for the same market share. It’s often been said that Solana is the Ethereum of this cycle, comparing the ICO boom in Ethereum in 2017 to the explosion of meme coins in the Solana ecosystem. Solana (top chart) versus Ethereum (bottom chart) also exhibits a price fractal suggesting the same investor behaviour.
Using the same Fibonacci extension of 1.414 for Ethereum on the Solana chart, projects a possible high price this cycle of over $1,000 per SOL. At current prices of $150, this represents an over 600% return on investment, putting Solana in the spotlight for a possible overperformer in the Crypto market.
XRP price prediction: $23+
XRP failed to make a new all-time high in the 2020/2021 bull market, leaving holders of the Cryptocurrency feeling left out. However, a new high could be made during this current cycle, which can potentially be predicted with Fibonacci extensions.
XRP reached both the 1.618 Golden ratio and the 2.272 Fibonacci extension during the 2017 bull market. Reaching the 2.272 Fib extension once again would result in a high price of over $200 per XRP. This would be a $20 trillion market cap for XRP and isn’t within reason, prompting the analysis to instead focus on the 1.618 Fib extension. Using the more modest price target, XRP could still potentially reach $23 per coin.
Dogecoin price prediction: $3.90+
Dogecoin is the most popular meme coin in the Crypto market, and the poster child of the 2020/2021 bull market. It was among the best performers during that particular cycle. It is among the rare Cryptocurrencies that had a Fibonacci extension target exceed the extension of the previous cycle.
Much like XRP reached first the 1.618 extension, then eventually topped out at the 2.272 Fib extension, Dogecoin did the same thing during its second cycle. The first Dogecoin market cycle peaked at the 1.618 Fibonacci extension. Using the Golden ratio of 1.618 once again, Dogecoin could find its next cyclical peak at around $3.90 per DOGE.
Benefits of trading crypto with PrimeXBT
PrimeXBT is an award-winning, all-in-one trading platform that offers Crypto Futures, Copy Trading, and CFDs on Crypto, Forex, Commodities, and Indices, as well as the possibility to Buy Crypto. The platform boasts some of the lowest fees in the entire industry and offers convenient deposit methods in both Cryptocurrencies and fiat.
Crypto Futures provides easy-to-use access to the most important trading tools, built-in charting software from TradingView, and more. With adjustable leverage up to 200:1, Crypto traders can tailor their positions based on their unique risk appetite and financial goals.
Combined with the data above, traders can make strategic decisions and manage positions easily with PrimeXBT’s accessible platform and powerful toolset.
Ready to reach your financial goals while managing risk effectively? Try PrimeXBT today and access a wide array of trading tools designed for both beginners and professionals alike.
Disclaimer: The content provided here is for informational purposes only and is not intended as personal investment advice. Past performance is not a reliable indicator of future results. The financial products offered by the Company are complex and come with a high risk of losing money rapidly due to leverage. Virtual assets are inherently volatile and subject to significant value fluctuations, which could result in substantial gains or losses. These products may not be suitable for all investors. Before engaging, you should consider whether you understand how these leveraged products work and whether you can afford the high risk of losing your money. PrimeXBT does not accept clients from Restricted Jurisdictions as indicated in our website.
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