## Ark Invest Sees Green for Bitcoin: Oversold Conditions Point to Potential Price Surge
Asset management giant Ark Invest, led by the renowned Cathie Wood, is predicting a positive turn for Bitcoin’s price, citing oversold conditions in the Stablecoin Supply Ratio Oscillator (SSRO). This technical indicator, which measures Bitcoin’s potential purchasing power, hit a -2.27 oversold point in early September, a level not seen since the bear market lows of 2022.
The SSRO is calculated by dividing the Bitcoin supply by the supply of all major stablecoins, expressed in Bitcoin. This ratio is then compared to its 200-day moving average, with two standard deviations above and below forming the Bollinger bands. When the SSRO falls below these bands, it signals oversold conditions, potentially indicating a reversal in price direction.
Ark Invest argues that this recent oversold reading could signal a positive turn for Bitcoin’s price, supporting their bullish stance. This optimism is further bolstered by the emergence of two higher local lows in Bitcoin’s market structure, observed at $52,530 in early September and $58,863 on October 10th, suggesting a potential uptrend is forming.
This prediction comes amidst Bitcoin’s ongoing rally, with the leading cryptocurrency seeing a 7% gain this week. Notably, Ark Invest CEO Cathie Wood has previously expressed bullish sentiments about Bitcoin, even predicting a potential surge to $3.8 million per unit by 2030. While this ambitious target is not impossible, it is highly unlikely to materialize in the near term. Wood believes Bitcoin would reach such a valuation if institutional investors allocated more than 5% of their portfolios to the cryptocurrency, a scenario considered unlikely at present.
Beyond Bitcoin, Ark Invest is also bullish on Ethereum, seeing it as an “institutional-grade asset” with significant yield-bearing potential. The firm predicts Ethereum to play a crucial role in the future of financial services.
At the time of writing, Bitcoin was trading at $67,194.97, up 2.17% in the last 24 hours. The latest developments and Ark Invest’s prediction provide valuable insights into the current market sentiment surrounding Bitcoin and its potential for future growth.