As Bitcoin hits a new all-time high above $28,500, analysts expect that it shall peak-out in early 2021 and thus retail players could get an opportunity to buy at lower levels ahead.
Bitcoin (BTC) is showing no signs of rest at the moment and continues to hit new milestones every passing day as we are getting closer to 2021. The Bitcoin (BTC) price just moved past $28,500 levels hitting its new all-time high. With this move, BTC added nearly $2000 to its price in just 24-hours.
The latest Bitcoin (BTC) price rally comes on the backdrop of rising institutional participation in the market. However, Bitcoin (BTC) has quickly retraced from the highs, and at press time, it is trading at $27,763 with a market cap of $515 billion.
With this, BTC has registered the longest winning streak for the month in more than a year’s time. However after an unprecedented rally so far in December 2020, Bitcoin can possibly peak-out in early 2021. Speaking to CNBC’s Trading Nation on Monday, Mark Newton, founder and president of Newton Advisors said:
“It is still quite bullish on an intermediate-term basis given that it just broke out to new all-time highs. I think we have a ways to go. Near term, my cycle composite shows us peaking out in early January.”
Newton further goes on to add that BTC’s RSI levels and weekly chart shows rising institutional interest in the cryptocurrency. Although the Google searches for Bitcoin have surged 750% year-over-year, they are “nowhere” close to 2017-highs.
The analysts also noted:
″[With] SPACs right now, you can make money at 10, 15, 20% a day. I just don’t think that investors have quite the appetite for crypto while the institutions are certainly very much heading in that direction.”
Bitcoin (BTC) Price Movement Now and in 2021 Based on Historical Trends
To determine BTC’s further price action, Newton refers to different Bitcoin cycles based on historical patterns. He hints at possible dips ahead providing an opportunity for retail players to buy at lower levels.
“All those years where we had a stellar Q4 we reversed course in trend back in late December, early January, and actually went lower,” he said. “So, I think there will be some opportunity [for] investors to be able to buy dips in crypto and bitcoin particularly.”
Although long on BTC, ETH, and LTC, Newton said that he might sell-out his position in the next one-two weeks. However, Newton also added that when one trades in Bitcoin, they must be prepared for huge volatility. Thus, there’s every chance that it can even go to $50,000 levels.
Many analysts have predicted that the Bitcoin (BTC) rally will cool-down in the coming days. However, some analysts have also noted that as money comes out of Bitcoin (BTC), Ethereum (ETH) shall be the major beneficiary of it. Some analysts have also said that 2021 will remain bullish for ETH as it will attract major institutional inflows over the next year.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.