Leaving behind all the uncertainty with the U.S. Presidential Elections, Bitcoin has finally jumped 7% moving past $14,500 levels to hits its new 2020-high. At press time, Bitcoin (BTC) is trading at a price of $14,670 with a market cap of $271 billion.
It is for the first time since January 2018 that Bitcoin has attained these levels. Well, the recent breakout has forced chart observers who are now eyeing the next milestone for crossing the all-time high of $20,000. Mike McGlone, commodity strategist at Bloomberg Intelligence said:
“Previous Bitcoin resistance at about $10,000 may transition toward $20,000 in 2021. Certain supply leaves demand as the primary price metric, and most indicators remain positive.”
In a note last month to investors, Fundstrat Global Advisors LLC technical strategist Rob Sluymer said that the next resistance for Bitcoin is $20,000.
Today’s surge in the BTC price helps the world’s largest cryptocurrency to extend its weekly gains above 11% and monthly gains above 32%. Moreover, Bitcoin (BTC) also extends its market dominance to over 65% of the overall crypto market cap.
The Bitcoin Bull Run Has Just Started
Analysts have started pointing out the latest break-out in the BTC price and note that this is just the bull run has just begun. Popular investor Raoul Pal just tweeted that “The action hasn’t even started. You definitely aren’t long enough.”
I did tell you that none of us was long enough Bitcoin (me included)! There will be corrections, so you can add on dips. Judging by 2016/17, 2021 will be a wild ride (there were two 30% corrections in 2017 in the midst of a incredible run). #Bitcoin #irresponsiblylong
— Raoul Pal (@RaoulGMI) November 5, 2020
To further back his claims, Pal has explained it with a series of chart comparisons while comparing the current BTC price movement to that in 2012/2017. Pal goes on to show the BTC price chart in both log terms and price terms. Interestingly, if BTC follows its previous bull run pattern, it can to a high to $250,000.
Then in price terms… pic.twitter.com/S9awARgTm7
— Raoul Pal (@RaoulGMI) November 5, 2020
Even before today’s price breakout, Galaxy Digital CEO and former Goldman Sachs manager Mike Novogratz noted that Bitcoin has officially entered the bull market. Novogratz said that irrespective of who becomes the next U.S. President, the Federal Reserve will continue to print money creating a more favorable case for Bitcoin (BTC).
"Cryptocurrency was bid the whole night … we're in a bull market in #bitcoin. The Fed is going to continue to print. Less fiscal, more Fed, good for crypto," says @novogratz on last night's trading. "We have crossed the Rubicon in its adoption." #btc pic.twitter.com/oLJWYFsxDa
— Squawk Box (@SquawkCNBC) November 4, 2020
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
