Analysts: Bitcoin Could Fall a Bit Before Spiking At the End of the YearNovember 14, 2020
As recently reported, bitcoin has moved past the $16,000 mark, the highest it’s been in approximately three years. However, some analysts claim that things are about to slow down a bit before they get better. They predict a period of consolidation and believe that bitcoin could potentially lose a bit of steam before regaining momentum and surging to $20,000 again by the time Christmas rolls in.
Some Believe Bitcoin Will Fall in the Coming Month
For crypto enthusiasts everywhere, the holiday season cliché has become true. Christmas has become a time of magic, miracles and wonder, and this will be the second time when as the holiday bubbles forward, the bitcoin price hits the $20,000 mark. However, it’s a bit rough to see the world’s number one digital currency fall a bit before it can surge to this position.
That’s not to say that this will happen, but some analysts don’t believe that bitcoin can keep up this kind of speed and resilience much longer before winding down somewhat. They are certain that things will require a bit of a breather before returning to form. They point to technical indicators such as the Relative Strength Index, which shows bitcoin being overbought at the time of writing. In addition, the MACD is also suggesting a correction of sorts as trading volume has slowed down a bit.
Rekt Capital has issued the following statement about bitcoin’s likely end-of-year status:
This month, bitcoin has managed its first ever monthly close above $13,900 – a resistance that previously price wicked forward before rejecting -72 percent in the months that followed. On the monthly perspective, bitcoin now has very few key resistances ahead before price challenges for a new all-time high. In fact, technically, bitcoin now finds itself within a relatively wide range of $13,900 and $17,100. Perhaps an interesting perspective is that bitcoin appears to behave in four-year cycles. Thus, a year-end close above $13,900 would act as support and potentially springboard price into a new exponential uptrend in 2021.
In other words, BTC could fall back a bit before rising to the top all over again in 2021. This would likely be attributed to the idea that many see bitcoin as something that could potentially hedge one’s wealth and keep them in a position of strength even as the US dollar and other fiat currencies fall in value.
A Drop, Then a Spike
One source is quoted as mentioning:
JPMorgan analysts said Grayscale’s bitcoin trust saw cumulative inflows through October, whereas gold exchange-traded funds (ETFs) saw ‘modest outflows’ since mid-October… This contrast lends support to the idea that some investors that previously invested in gold ETFs such as family offices, may be looking at bitcoin as an alternative to gold.
Either way, bitcoin appears to be at the height of its recent bull run as of late. We can only hope that things last through the end of the year.
Source: Read Full Article