BRC-20 Token Looks Set to Fly High: Is Bitcoin’s New ATH the Reason?

• An analyst predicted that SATS’ price increase could push the market cap to $5 billion.
• The MACD reading was positive, suggesting an upward momentum for the token.
• Money flow decreased, indicating that it could be difficult to flip the $0.00000074 resistance.

According to analyst CryptoKaleo, SATS (SATS) could be ready to hit a $5 billion market cap. CryptoKaleo mentioned this in a post on X, noting that the BRC-20 token’s market cap of $1.4 billion was undervalued.

$SATS looks ready to send.

A bit surprising the top BRC20 memecoin is still sitting at only a $1.4B mcap.

Send this to $5B+ with haste.

Long it with me here: https://t.co/32dHnZIFxS pic.twitter.com/TsNbtCltzV

— K A L E O (@CryptoKaleo) March 6, 2024

Although the analyst did not share the reason behind his prediction, it seemed that Bitcoin’s (BTC) recent milestone was a major factor. On March 5, Bitcoin rallied above $69,000 and hit a new all-time high.

This development sparked bullish sentiment around Bitcoin and its ecosystem. SATS is a BRC-20 token built on the Bitcoin Ordinals network for the unfamiliar. Therefore, one can assume that SATS is a beta of Bitcoin.

Furthermore, historical data showed that BTC has made a strong correction with BRC-20 tokens, including Ordi (ORDI) and SATS. At press time, SATS changed hands at $0.00000066, representing a 33.84% hike in the last seven days.

SATS Price Analysis

On the daily timeframe, SATS’ price headed in the $0.00000074 direction, which was the next major resistance. There was also immediate support at $0.00000045, meaning bulls were present in the market.

If SATS flips the overhead resistance, then the token could delete one of its zeros and hit $0.0000010. To achieve that, buying pressure needs to be much more intense. Signals from the Moving Average Convergence Divergence (MACD) supported a possible uptrend.

At press time, the MACD reading was in positive territory, indicating an upward momentum. Also, the 12 EMA (blue) crossed over the 26 EMA (orange), indicating that the buying pressure was much greater than the selling side.

If this continues, SATS price action could remain bullish. However, a bearish appearance could halt this momentum. This was evident in the trend shown by the Money Flow Index (MFI).

As of this writing, the MFI reading had fallen to 66.25. This decline suggests that capital flowing into SATS has gone elsewhere. If this inflow does not increase, the token could find it hard to surge higher.

SATS/USDT Daily Chart (Source: TradingView )

At the same time, traders might need to be careful of a surge in money flow. If the flow increases, SATS could rise above $0.00000074. However, if the MFI reading surpasses 80.00, SATS would be overbought, and this could trigger a price reversal.

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