Bitcoin (BTC) is hitting one all-time high after another, today passing over USD 41,700 but what might come next? Per many insiders, BTC still has room to go higher before a more substantial correction happens.
BTC has gone up 10% in a day and 42% in a week to a price of USD 41,738 on Friday at 12:19 PM UTC.
“Assuming history is destined to repeat, one could expect further upside appreciation until BTC trades at 10x – 15x its 200-week moving average; at a weekly close of [USD] 7,904, such would imply a price between [USD] 79,040 and [USD] 118,560,” said Kraken Intelligence, the exchange’s team of in-house researchers, in their December 2020 Market Recap & Outlook report.
Per the researchers, as BTC’s correlation with both risk-on and risk-off assets has seemingly strengthened and petered out, the months before us “could bring a shift in trend amid an inevitable mean reversion.” They argue, however, that BTC’s rally is a sign of “market participants seeing incremental near-term upside despite historic price levels being realized.” And that’s not all the good news, as per the researchers’ data,
“the case can be made that BTC has room to run higher.”
But Kraken’s researchers are not the only ones seeing more room for BTC to grow. Chamath Palihapitiya, CEO of venture capital firm Social Capital and Chairman of commercial spaceline Virgin Galactic, stated in an interview with CNBC that BTC is “probably going to USD 100,000, then USD 150,000, then USD 200,000.” He couldn’t say in what period will the price reach this level, but gave five or ten years as possibilities.
However, both the Kraken researchers and DiPasquale had some warnings to share as well, and even Novogratz said that the markets don’t go up every day forever, meaning a correction is bound to happen. DiPasquale noted that bitcoin is inherently volatile, and “while we expect the volatility to continue, we also expect higher highs and more support, leading to higher lows.”
Meanwhile, Kraken Intelligence said that, historically, the first quarter of a year is typically a negative-yielding period for the first coin by market capitalization, arguing that “market participants ought to be considerate of BTC and the broader market potentially posting less favorable monthly returns in 1Q21.”
Others seem to suggest there will be a downward correction relatively soon, possibly after the price hit USD 40,000 – but also that the price will continue on its upwards trajectory, or as economist and trader Alex Krüger said, “Upwards trend is unscathed.”
trends.embed.renderExploreWidget("TIMESERIES", {"comparisonItem":[{"keyword":"bitcoin","geo":","time":"2016-01-08 2021-01-08"}],"category":0,"property":"}, {"exploreQuery":"date=today%205-y&q=bitcoin","guestPath":"https://trends.google.com:443/trends/embed/"});____
More reactions:
__
Bitcoin broke ATH with gold, the only meaningful chart we should look at. USD is too volatile to use it anymore! https://t.co/CDGd8H4lGW
— zender ⬛ Taproot by BIP8 (@zndtoshi)
__
Looks like a new ATH for $BTC active addresses is in ladies and gents! Previous cycle benchmark–when aa’s recorded new highs–was around late 2016/early 2017. pic.twitter.com/nlweUuQVlT
— Elias Simos (@eliasimos) January 8, 2021
__
Here’s the market impact of the negative gamma I mentioned, quantifiedhttps://t.co/pOhkXjZmWD
— Alex Krüger (@krugermacro) January 8, 2021
____
Learn more:
Pension Funds Getting Set to Board Bitcoin Bandwagon, Say Insiders
Up or Down? Data Send Mixed Signals About Sell Pressure for Bitcoin & Ether
Crypto in 2021: Bitcoin To Ride The Same Wave Of Macroeconomic Problems
Bitcoin Wheel Cannot Be Stopped
Crypto Adoption in 2021: Bitcoin Rules, Ethereum Grows & Faces Rivals
Crypto in 2021: Institutions Prefer Bitcoin, Retail Open to Altcoins
Bitcoin is a ‘Ponzi’ With Infinite Supply – Skeptics Chime In
Economists Speak of ‘Once-in-a-Millennium Change’ in Monetary History
Bitcoin & Crypto Taxes In US: When to Sell and When to Hodl
Bitcoin Now Retail Inflation Hedge, Experts Agree – and Altcoins May Follow Suit
__
(This article was updated at 12:35 PM UTC with a comment from Chainalysis. At 13:01 UTC Google Trends data have been added).
bestadmin
