Bitcoin’s Path to $130K Explained by Piper Sandler’s Chief Technician

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As a seasoned market observer with years of experience under my belt, I find Craig Johnson’s insights both insightful and intriguing. His technical analysis approach, particularly his bullish stance on Bitcoin, resonates with me given my own background in chart-based predictions. The potential rise of Bitcoin to $130,000 is certainly an exciting prospect that I find myself eagerly watching unfold.

In a recent interview on CNBC, Craig Johnson, the Head Market Analyst at Piper Sandler, offered insights into various market aspects such as Bitcoin‘s progress, sector performance patterns, and notable individual stocks. All of his comments were based on his extensive industry knowledge.

Johnson explained that Bitcoin’s recent surge is a positive technical sign following several months of stability. According to him, this could lead to a significant increase in value up to $130,000, as determined through technical analysis. He added that such a breakout frequently stimulates increased buying activity, implying more investors might join the upward trend. Johnson emphasized his focus on chart patterns when predicting potential price movements, stating, “As a technician, we’re merely observing the trend.

After an election, it’s commonly observed that smaller and midsize companies tend to do better, as pointed out by Johnson. He referenced historical records, indicating that these sectors have beaten the S&P 500 about 82% of the time, from Election Day until the end of the year. Johnson predicts this pattern could persist up till 2025, implying a potential change in market dominance.

Johnson discussed NVIDIA’s less enthusiastic stock response after its earnings release. He explained that the low performance was likely due to the high anticipations already built into the stock price. However, he noted that Piper Sandler’s leading semiconductor analyst has increased their predictions for NVIDIA, viewing temporary declines as possible buying chances.

In reference to Target, Johnson highlighted the persistent issues affecting its stock. He brought attention to the fact that the company’s shares have crossed a price gap, potentially causing the stock to drop towards $113. Johnson emphasized that such gaps often get filled, implying an increased possibility of further declines due to this technical observation.

In his conversation about market trends, Johnson mentioned that the majority of excitement is centered around high-performing stocks. Yet, he highlighted that merely two of the labeled “Magnificent Seven” giant companies – NVIDIA and Meta – rank among the top 50 performers in the past two years. Johnson drew attention to the fact that other stocks, like those within industrial sectors, have shown better returns.

Currently, as I’m typing this, the value of Bitcoin is approximately $97,237. Over the last day, it has increased by 2.6%.

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2024-11-21 18:02