Asymmetric Upside
Investors,
Bitcoin is offering the best asymmetric upside in the market right now.
Why am I so confident to say that?
This is the chart of Bitcoin relative to the Russell 2000 (BTC/IWM):
Specifically, I want to highlight the two regression channels:
The first, from the recent ATHs, is forming a bull flag
The second, from the 2022 bear market lows, is being retested at the lower-bound
In my view, the multi-month production of lower highs and lower lows (which have formed the bull flag) does not invalidate the multi-year production of higher highs and higher lows.
In other words, this short-term weakness is creating an opportunity.
This chart of BTC/IWM needs to gain +24.7% to make new all-time highs.
If that scenario plays out, then what is BTC/USD (or BTC/EUR) doing?
No one can say specific numbers, but my guess is that BTC on an absolute basis would gain quite a bit more than +25% if BTC/IWM makes new all-time highs.
With BTC currently trading at $111.7k, a +25% gain would bring the asset to $139k.
As many of you might recall, this is a figure that I’ve outlined on several occasions as an intermediate upside price target, which I’m reaffirming once more.
But it all goes back to the initial point that I made…
Bitcoin has the best asymmetric upside in the market right now.
Here’s why: