Nicholas Merten has dived into why he thinks Bitcoin is on pace to achieve $70,000 price tag in the near future.
Nicholas says the level to watch as the top on short term for Bitcoin is $70,000 because Bitcoin has had an ‘exuberant rally’ breaking past the previous all time high of $20,000 set back in December 2017. Bitcoin has since been climbing up since it broke past the previous all time high in December peaking at $58,000.
Nick says $70,000 is his price target for Bitcoin in March and possibly early April because historically, the logarithmic line of resistance has weighed down price for the past eleven years. He believes there is a chance Bitcoin will break above the logarithmic line of resistance that has weighed down the price of Bitcoin in the past three tops.
Nick says if Bitcoin is to set a temporary top of $70,000 in March or early April, what is expected to happen afterwards is the increase in altcoin dominance for the next two to three months. The secondary half of altcoins cycle is upon us after the first went from 27% market dominance to 39%, and he predicts a movement up to 50% to test the previous line of resistance and then a pull back.
He believes there is going to be two major altcoins cycle in the overall bull market, but we will need to see Ethereum price higher first to drive the secondary altcoin cycle.
The upgrade set to be deployed on Ethereum mainnet next month could be a catalyst which include optimizations to gas fee usage, the solution will scale Ethereum by a factor of 100. The Optimism Dai bridge could also serve as game changer for MakerDao and Ethereum.