Bitcoin Price
Bitcoin Expected to Rocket Higher as “Strong Close” takes Place Above $13k
Nick Chong | Oct 27, 2020 | 03:09
- Bitcoin printed a massive weekly close on Sunday evening after a strong rally.
- The weekly close was the highest since January 2018.
- One analyst thinks that this close will send Bitcoin much higher in the months ahead.
Bitcoin Expected to Rocket Higher on Close Above Resistance
Bitcoin printed a massive weekly close on Sunday evening after a strong rally. The cryptocurrency printed its first weekly close above $13,000 and its highest weekly close since January 2018, marking a big win for bulls and a loss for the skeptics that thought the ongoing rally was a range deviation.
One crypto-asset analyst thinks that this close will send Bitcoin much higher in the months ahead. The trader in question shared the chart below on October 25th, arguing that this “strong close above resistance” could trigger a move to new all-time highs in the long run:
“keeping it simple here with $btc, the weekly chart looks phenominal. now firmly above all downtrends from the 2017 20k top and this week just closed on its highs above key 12.5k resistance. the sky is the limit now imo, and this market is not for shorting!”
Chart of BTC's price action since the start of 2017 with analysis by crypto trader SmartContracter (Twitter handle). Source: BTCUSD from TradingView.com
The trader that made this call is the same one that in the middle of 2018 predicted Bitcoin would drop to $3,200 to bottom. The cryptocurrency bottomed at $3,150 six months after he made his prediction, marking one of the most accurate BTC predictions to date.
Fundamentals Favor Bulls
Fundamental trends favor bulls.
Just last week, it was revealed that PayPal is going to be supporting Bitcoin and other digital assets in its own application. It will support the purchase and sale of the coin, along with digital payments between retail investors and vendors.
In an extensive report, JP Morgan analysts noted that this move is crucial in that it will allow other corporations to feel comfortable entering the Bitcoin space. Mike Novogratz, CEO of Galaxy Digital, specifically mentioned how this move will basically force traditional financial institutions to invest in cryptocurrency infrastructure. This may only be compounded with the news that PayPal is looking to acquire a crypto-native company, such as BitGo, a digital asset custodian.
Related to this, large corporations and institutional players are starting to buy Bitcoin.
For one, Square, the $80 billion financial technology company, spent $50 million on Bitcoin earlier this month. The firm noted that this investment may be a hedge against inflationary trends.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Expected to Rocket Higher as "Strong Close" takes Place Above $13k
