Bitcoin (BTC) currently shows no signs of rest and continues to reach new frontiers every day as it approaches 2021. The price of Bitcoin (BTC) has just crossed the $28,500 mark, reaching its new historical high. Thus, in just 24 hours, BTC added almost $2,000 to its price.
The latest Bitcoin price rally (BTC) comes amid growing institutional market participation. However, Bitcoin (BTC) quickly recovered its highs and is currently trading at $27,763 with a maximum market capitalization of $515 billion.
At the same time, BTC registered the longest winning streak in more than a year. However, after unprecedented growth in December 2020, bitcoin may peak in early 2021. Speaking to CNBC's Trading Nation on Monday, Mark Newton, founder and president of Newton Advisors, said:
As a result, BTC recorded its longest winning streak in more than a year. However, after an unprecedented rally in December 2020, Bitcoin may peak in early 2021. Speaking at a CNBC Trade Commission meeting on Monday, Mark Newton, founder and president of Newton Advisors, said:
"In the medium term, he is still optimistic, given that he has just broken new historical highs. I think we have ways to go. In the short term, my composite cycle shows that the peak will come in early January."
Newton goes on to add that RSI levels and the weekly BTC chart show a growing institutional interest in cryptocurrency. Although the number of requests to Google about Bitcoin increased by 750% compared to last year, they "nowhere" reached the maximum of 2017.
Analysts also noted:
"Using SPACs right now you can earn 10, 15, 20% a day. It just seems to me that investors do not have a very good appetite for cryptocurrency, while institutions are certainly moving very strongly in this direction."
The dynamics of bitcoin prices (BTC) now and in 2021 based on historical trends
To determine the further movement of the BTC price, Newton turns to different Bitcoin cycles based on historical models. He hints at possible downturns in the future that allow retail players to buy at lower levels.
"All those years when we had a stellar fourth quarter, we completely changed course in late December - early January and actually went down," he said. "So, I think that investors will have some opportunity to buy cryptocurrency and, in particular, bitcoin."
Despite long positions on BTC, ETH and LTC, Newton said he could sell his position in the next 1-2 weeks. However, Newton also added that when someone trades bitcoin, he should be ready for huge volatility. So there's every chance he could even reach the $50,000 level.
Many analysts predict that the bitcoin rally will stop in the coming days. However, some analysts also noted that since the money comes from Bitcoin,Ethereum will be their main recipient. Some analysts also said 2021 would remain upbeat for ETH as it attracts significant institutional inflows next year.