- Bitcoin has undergone a strong rally since last week’s lows. While the rally has tapered off over the past few hours, the cryptocurrency is still trading over 10% higher than it was in the middle of last week.
Bitcoin Could Soon Move Past $20,000, Suggests Key Technical Pattern
Bitcoin has undergone a strong rally since last week’s lows. While the rally has tapered off over the past few hours, the cryptocurrency is still trading over 10% higher than it was in the middle of last week.
Analysts are confident that further gains are on the horizon despite the recent price weakness. Namely, the cryptocurrency has dropped around $350 from its daily highs as selling pressure has slightly mounted into the start of the Asia trading session.
Leading analysts think that Bitcoin is currently trading in what is known as a “flag” in technical analysis.
CryptoDog, a leading analyst, recently shared the chart seen below. The chart shows that Bitcoin could move above $20,000 in the coming days as it prints a bullish reversal from last week’s lows.
A similar observation about the Bitcoin chart was made by other top analysts as the leading cryptocurrency undergoes its rebound.
Let's start with ~$20,800 for now?https://t.co/EacgAtcuVE pic.twitter.com/T4T7A8JiRZ
— The Crypto Dog? (@TheCryptoDog) December 14, 2020
Strong Fundamentals
JPMorgan analysts say that Bitcoin’s fundamentals are stronger than ever as there is institutional adoption of the cryptocurrency:
“MassMutual’s Bitcoin purchases represent another milestone in the Bitcoin adoption by institutional investors,” the strategists said. “One can see the potential demand that could arise over the coming years as other insurance companies and pension funds follow MassMutual’s example.”
For those that are unaware, MassMutual is an insurance company that is based in the U.S. that purchased $100 million worth of BTC. The company purchased the Bitcoin after acknowledging the growing need for exposure to the digital economy amid these unprecedented macro times.
Paul Tudor Jones, a Wall Street billionaire, commented on this earlier this year in a popular research note. He wrote on Bitcoin at the time:
“One thing that piqued my interest from this list of assets, and that one day might be broughtto prominence by the GMI, is Bitcoin. Truth in advertising, I am not a hard-money nor a crypto nut. I am not a millennial investing in cryptocurrency, which is very popular in that generation, but a baby boomer who wants to capture the opportunity set while protecting my capital in ever-changing environments. One way to do that is to make sure I am invested in the instruments that respond first to the massive increases in global money. And given that Bitcoin has positive returns over the mostrecent time frames, a deeper dive into it was warranted.”
More investors see BTC as a crucial part of any portfolio as the pandemic continues.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Macro Analysis Predicts Bitcoin Has Begun Rally Toward $100k
