Bitcoin May Continue Parabolic Price Action, Suggests eToro Analyst
Bitcoin (BTC) has been an absolute tear as of late. Ever since it hit $10,000, the cryptocurrency has been almost unstoppable, rallying to $13,200 as of the time of writing this after peaking at $13,800 earlier today.
With this rapid move, some have begun to suggest that $20,000 — the crypto asset’s all-time high established in December 2017 — is coming into Bitcoin’s scopes once again. In a recent comment given to the revived trade publication CCN, Simon Peters of eToro, a cryptocurrency-friendly brokerage, expressed that $20,000 is coming into view. He claimed that if BTC manages to “maintain its current parabolic trajectory”, which this outlet mentioned in a previous report, it could reach the aforementioned auspicious price point “within the next 7 to 14 days.”
Peters gives two reasons for this analysis. Firstly, the last time BTC was at $11,800, it took around one to two weeks for the cryptocurrency to hit $20,000 from there, which was an upward move catalyzed by retail FOMO. And secondly and more importantly, Facebook’s Libra project has imbued this space with a new sense of validity, which should lead to price appreciation with time.
Peters didn’t stop there though. In a later comment, the eToro analyst remarked that $50,000 or $100,000 could be seen for Bitcoin this year, noting that BTC is just ending the first half of this year. This quip comes shortly after Naeem Aslam of Think Markets explained that as long as BTC stays above the 242-day moving average, which is somewhat unorthodox compared to the traditional 50 or 200-day, a correction is unlikely. In fact, he quips that in the long run, Bitcoin is likely to enter the $60,000 to $100,000 range — just around six to ten times higher than current levels.
To embark on this spectacular rally, however, Aslam asserts that Bitcoin will need to decidedly break past $20,000, which will push BTC into a new region of price discovery. And from there, $50,000 and $100,000 remain the only other key resistances on the cryptocurrency market’s attempt to reach the so-called “moon”.
Institutional Money Behind Boom
On the matter of why this boom is coming to life, Peters explained:
“What’s interesting about this rally is that it doesn’t seem to be fuelled as heavily by new retail investors… Looking at historic Google trends data, the search terms for ‘Buy Bitcoin’ have typically spiked with the price as new retail investors jumped on the train. The fact that trends data hasn’t spiked with price on this occasion suggests that new capital is instead coming from institutions.”
Despite heavy institutional involvement, preliminary data is showing that retail is getting on board. As reported by this outlet previously, analytics service The TIE claims that the move past $10,000 resulted in a massive uptick in retail interest. More specifically, once Bitcoin moved past $10,000 for the first time since March 2018, the number of BTC-related tweets spiked. In fact, the analysts at The TIE suggest that on June 22nd, there were over 50,000 Bitcoin-related tweets — the highest this figure has been in 489 days (February 20th, 2018).
But, as to how this will play out for the Bitcoin price remains to be seen.
Photo by Austin Distel on Unsplash