Bitcoin (BTC) has achieved another all-time high (ATH) today, breaking through $28,500 earlier this morning. Since breaking the previous 2017 high of about $19,700 in mid-December, Bitcoin has been steadily climbing but recently got rejected at $27,780 just after Christmas.
At the same time, Bitcoin’s overall market capitalization has reached the $528 billion mark, making it more valuable than Visa, Walmart, Johnson & Johnson, and JPMorgan Chase. At this rate, it will soon overtake Berkshire Hathaway, the investment firm owned by long-time Bitcoin critic and legendary investor Warren Buffet.
With no technical resistance levels to hold it back, it will only face a further challenge when trying to break through the psychological $30,000 mark.
What are analysts saying?
Speaking to CNBC’s Trading Nation, Mark Newton of Newton Advisors believes Bitcoin could climb higher in the short term but will run out of steam in mid-January 2021. This is based on two highly reliable indicators, the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), both of which suggest a reversal is coming.
A well-known trader on Twitter going by the handle @BigCheds outlined a ‘hanging man‘ pattern that suggests a 59% chance of continued upward momentum. This puts the BTC/USD trading pair in an uncertain position, leaning only mildly to the upside.
After Bitcoin briefly dipped below $26,000 yesterday, full-time trader and economist Michael van de Poppe noted that it would need to break above $27,500 to confirm a continued uptrend. This has now happened, meaning we should now continue to $30,000 with little resistance. However, with very little support built through the $20,000 to $30,000 range during this rally, a reversal could take us all the way back down to $19,000.
Institutions betting on Bitcoin
Institutional investors are still pouring money into Bitcoin, with huge names like Skybridge Capital, MassMutual, and Guggenheim Investors recently jumping on the BTC bandwagon.
At 169-years old, MassMutual is one of the oldest investment firms in the US, making its $100 million BTC investment a hugely positive sign for the crypto market. Analyst Scott Miner from Guggenheim investments recently stated that his firm’s estimates suggest a $400,000 price point for Bitcoin in the long-term.
That prediction may seem hopeful but it fits in with price movements following previous halvings. The previous all-time high in 2013 was $1,000 followed by a multi-year long bear market that only broke $1,000 again in 2017. Less than a year later, Bitcoin had increased by 20 times.
If the same situation plays out, the previous all-time high of $20,000 should go up by 20 times in the coming months, hitting $400,000 by late 2021.