There’s still room for Bitcoin’s price to increase in the coming days before it takes a breather early next year. That’s according to Mark Newton of Newton Advisors.
“I think we have a ways to go. Near term, my cycle composite shows us peaking out early in January,” he told CNBC’s “Trading Nation.” Newton is suggesting that yesterday’s close at $27,366, a new all-time high for the dominant cryptocurrency, won’t be the last top, at least until early next year, according to his prediction.
Based on technical indicators alone, the Relative Strength Index (RSI) is in overbought levels while the MACD indicator is primed for a reversal.
Most of the money at the moment flowing into Bitcoin is coming from institutional investors. Most recently, institutions like Guggenheim Investments, Skybridge Capital, and MassMutual said they have invested in Bitcoin.
Per on-chain data, during the latest slight Bitcoin drop, Bitcoin being sold by Bitcoin investors for profit were being absorbed by Bitcoin whales, or those with 1,000 BTC or more in their wallets.
Still, the rally being front run by institutional investors is the very reason why Bitcoin could go up, Newton said. Based on Google Trends, while search interest is up for Bitcoin, it is still nowhere within the peak search interest in December 2017, suggesting that the majority of retail investors have not yet dabbled back into Bitcoin.
Newton also looked into historical data. When Bitcoin had a stellar 4th quarter, it reversed the first quarter of the following year. The same happened in December 2017 and January 2018. “So, I think there will be some opportunity [for] investors to be able to buy dips in crypto and bitcoin particularly,” he remarked.
A short term prediction puts Bitcoin at $36,000, but long term, wild prediction includes Guggenheim Investments putting Bitcoin’s value north of $100,000 per BTC. “Our fundamental work shows that Bitcoin should be worth around $400,000,” said Scott Miner, Chief Investment Officer of Guggenheim in an interview with Bloomberg, noting the scarcity of Bitcoin and its relation to gold as a percentage of GDP being the key factors.
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