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Bitcoin poised for $150K ‘batshit season’ but sellers could dent rally

CointelegraphCointelegraph2024/08/27 04:24
By:Tom Mitchelhill

Bitcoin is soon to enter what one analyst is calling “batshit season,” which could see the price of BTC surge as high as $150,000 by the end of this year — though others suggest a short-term seller overhang could dent the rally. 

In an Aug. 26 post to X, RealVision analyst Jamie Coutts said that “unless something has fundamentally changed,” Bitcoin’s ( BTC ) price action is still on track to enter “batshit season” also known as the Banana Zone , a term coined by RealVision founder Raoul Paul. 

In an attached chart, Coutts noted that in the previous two bull cycles, Bitcoin had notched new respective all-time highs in the 365 days following local US dollar Index peaks. 

He suggested that if BTC follows previous bull market patterns, it could surge more than 100% from an approximate price of $64,000 to reach as high as $150,000 by the end of this year. 

Bitcoin could rally over 100% if it follows previous cycle trends. Source: Jamie Coutts

However, other analysts aren’t as optimistic in the short term. Pseudonymous CryptoQuant researcher ManagerXBT pointed to high volumes of potential selling pressure for Bitcoin. 

Short-term BTC sellers have become active

In an Aug. 27 research note , ManagerXBT noted that large short-term bitcoin sellers had “become active” and explained that while Bitcoin had staged a successful rally last week, some stagnant metrics had begun showing signs of activity once again. 

Related: Ethereum's 40-month slump vs. Bitcoin won't end in a dollar 'freefall' scenario

“Short-term holders transferred 33,155 Bitcoin as shown by the 1w-1m spent output age bands. This could present immediate selling pressure. The slowdown in price suggests that Bitcoin might initiate a free pullback,” wrote ManagerXBT. 

Short-term holders transferred 33,155 Bitcoin in recent weeks. Source: CryptoQuant

He advised “extra caution” if these figures were to increase in the coming days, adding that a potential sell-off could become more intense. 

On Aug. 23, Bitcoin’s price gained 6.2% and has since held steady above the $63,000 support level. 

Despite this price action, many Bitcoin derivatives traders have yet to flip bullish, indicating skepticism about the recent move upward.

The Bitcoin futures premium — a key indicator of risk appetite for derivatives — has stagnated at around 6% for the last month. This indicates that many professional traders remain cautious about opening leveraged long positions. 

Bitcoin 2-month futures annualized premium. Source: Laevitas.ch

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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