Theta (THETA) price soared over 12% yesterday to return to the all-time highs area.
Fundamental analysis: Bitcoin could rise to $115K this summer, says Pantera Capital CEO
Bitcoin could double in value before the end of the year says Dan Morehead, chief executive and a chief investment officer at Pantera Capital.
A rise in Bitcoin price has yielded strong demand for altcoins as well, with another big leg higher in the world’s largest cryptocurrency is likely to result in even more gains for altcoins, including Theta.
“Bitcoin is now ahead of our April 2020 forecast schedule – to hit $115K this summer,” said Morehead.
This estimate is predicated on an analytical framework known as the stock-to-flow model, which is used to evaluate an asset’s price based on its annual issuance schedule. This framework gauges Bitcoin’s scarcity, which is controlled by the cryptocurrency’s network programming embedded into its code when it emerged 12 years ago.
In such a system, the number of new BTC created with every new data block every 10 minutes gets halved once in every four years. In other words, this stock-to-flow model alleges that the price of Bitcoin should increase as the issuance rate falls.
Before he founded Pantera Capital, Morehead was chief of macro trading at the hedge fund Tiger Management, and before that he worked for Deutsche Bank and Goldman Sachs.
Back in January, Morehead said the price of Bitcoin was set to rise by $10,000 every month for the next seven months. According to this, Bitcoin is expected to hit the predicted $115,000 mark somewhere around August.
“I realize that price may sound ludicrous. But, $5,000 sounded equally ludicrous as our first written price forecast when we launched Pantera Bitcoin Fund at $65/BTC,” he said.
Technical analysis: Buyers want more
THETA price soared over 12% yesterday to return to trade above the $7.00 mark again. The digital asset exploded almost 70% last week to total March gains to near 150%.
Theta daily chart (TradingView)
The buyers are now looking to post new record highs above the current all-time high of $8.14. In this context, traders looking to buy Theta will aim for $8.72 and $9.47, which represent 127.2% and 161.8% Fibonacci extension lines, respectively. On the downside, the first meaningful support is located near the $5.00 mark.
Pantera Capital CEO Dan Morehead said Bitcoin could rise to as much as $115,000 this summer, according to the so-called stock-to-flow model. This could take altcoins higher as well, with Theta price already up almost 150% in March.