Bitcoin had one of its best performing months this year and was just shy of its highest monthly close ever. This is important for a number of reasons, primarily from an institutional investment standpoint.
Over the weekend, Bitcoin prices topped $14,000 for a brief moment which marks the asset’s highest level since January 2018. The move did not last long and was over within a few minutes but a long wick did touch an almost three-year high of $14,100 according to Tradingview.com charts.
Since then, prices have pulled back to the $13,700 level during the Monday morning Asia trading session.
The move has given Bitcoin a huge monthly close for October, which is just a few dollars away from its highest ever close that came in December 2017.
Bullish For Institutions
Investor and chart expert Peter Brandt observed this big green candle stating that it is important because month-end asset valuation is how institutional participants appraise their holdings and investments.
Bitcoin's closing price in Oct was within dollars of the highest monthly close EVER. $BTC
Why do monthly prices matter?
B/C month-end asset valuation is how institutional participants appraise their holdings & investments. pic.twitter.com/F1WYQYZwG2
— Peter Brandt (@PeterLBrandt) November 1, 2020
With this in mind, many of them will be looking towards Bitcoin now as it has been one of the best performing assets in a year that has been one of the worst for global economies.
Since the beginning of 2020, Bitcoin has gained 90% to current levels. By comparison, gold which has also had a solid year has only managed a gain of 24% over the same period.
Analyst and creator of the popular stock-to-flow model, ‘PlanB’, commented on historical performance;
“Bitcoin is the best performing asset, this year, last 5 years and last 10 years. Even risk-adjusted bitcoin outperforms all other assets, year after year.”
Average monthly returns for BTC in October are 13% according to Unfolded, the month just gone saw a 28% return, which is fourth best October in history.
November returns are usually much better so the bullish momentum may well continue for another month.
— unfolded. (@cryptounfolded) November 1, 2020
Current Bitcoin Price Outlook
Analyst, Josh Rager, commented that Bitcoin just needs to break above $13,880 for an all-time high close in the coming months. The recent move was just a spike, likely caused by one or two whales since it happened within minutes.
Unless you live in a cave, you know that Bitcoin just hit its 2nd highest monthly close of all time$BTC just needs to break above $13,880 for an all-time high close in the coming months pic.twitter.com/tZkOUotuPl
— Josh Rager 📈 (@Josh_Rager) November 1, 2020
The asset has retreated a couple of percent since its weekend peak and could fall further to support at around $13,600 before any more upward moment is found. Now that the 2019 peak has been topped, the next target for the bulls is levels not seen since early 2018 which would be anywhere from $15k to $17k.