Leading analysts say that Bitcoin could break a new historical high in the next three months by breaking current price limits.
According to the Coin Telegraph, the price of bitcoin has remained stable for a limited period of several months. Mohit Sorout, chief financial officer of Bitazu Capital, says a new historical peak for the Bitcoin price is not far off.
Since January of this year, the price of Bitcoin has fluctuated between $ 10,200 and $ 11,800 and has not changed much, except in a few cases.
Usually when a bitcoin stays fixed in a limited price range for a long time, a big price jump is expected to occur.
It is not yet certain that in the short term, a breakout could be seen, but Serwat says that if that happens, Bitcoin could reach the $ 20,000 peak in three months.
Based on what has happened in previous price cycles, Bitcoin always tends to start moving fast after a long period of stabilization in a limited price range. This pattern historically includes both breakouts and breakdowns.
From May to July, bitcoin fluctuated in the $ 8,800 to $ 9,800 range and stabilized at around $ 9,100. Then, two months after stabilization, it rose to $ 12,123 within 12 days of conquering the threshold.
Referring to Bitcoin's fundamental desire to make big leaps after long periods of consolidation, Surat says:
Now what dominates the price of bitcoin is the calm before the storm. If the digital currency can break its current price channel, it could reach a historic high of $ 20,000.
Asked about his reasons for considering the quarterly period, Surat said he had reached this number by observing bitcoin fluctuations.
According to Surat, the price increase to $ 20,000 could even happen earlier than three months. He adds:
Given the evidence of accelerating uptrends after a long period of price stabilization, it can be expected that the expected jump in bitcoin will occur sooner than three months.
Meanwhile, one of the important indicators that should not be overlooked is the reduction of open (unsettled) futures market contracts compared to previous uptrends.
The number of futures contracts has been declining since the US Commodity Futures Trading Commission (CFTC) filed a complaint against Bitmax exchange managers. This, in contrast to previous market uptrends, could signal a slow uptrend for Bitcoin.
In addition, increased demand from institutional investors could be another reason for Bitcoin to start its uptrend in 2021.
Earlier, Barry Silbert, CEO of Grayscale, said that the assets under the company managed to reach a new record of $ 6.4 billion. Silbert says the company continues to see a flood of capital flow into digital currencies.
Other well-known market institutions, such as Square and MicroStrategy, which have previously purchased large quantities of bitcoins, also view the digital currency as a treasury asset. This means that many institutional investors buy bitcoins for long-term profit.
The price of Bitcoin in October, despite the positive news of corporate investment, remained stable for a limited time. However, PlanB, the creator of the popular accumulation model, says that the possibility of asymmetric returns has increased. He adds:
Why isn't the price of bitcoin rising despite the massive buying of institutional investors? Who is selling their bitcoins? Bitcoin is exactly where it needs to be, and above the $ 10,000 threshold, it is firmly on the rise to conquer new price highs. Be patient, a big leap is on the way.