The lead analyst at RoboForex, Dmitry Gurkovsky, discusses possible future scenarios for Bitcoin’s price.
Bitcoin continues to show steady growth, while a wealth of interesting and positive news accompanies it. An important resistance at the $13,000 level was breached on the decision by PayPal to add support for cryptocurrencies. Users will be able to buy and sell crypto assets through the company’s payment system, and to store their savings there as well. This opens entirely new prospects for the crypto market — now even someone far removed from the digital world can easily acquire digital assets. Moreover, as early as 2021 PayPal will enable cryptocurrency payments at numerous points of sale.
In ordinary life we routinely encounter money transfers, and sometimes the fee for a small-value transaction can be quite high in percentage terms. Just a few days ago in the Bitcoin network recorded a record transfer of about $1.15 billion, with a fee of just $3.58. Such events naturally invite reflection on banking charges for ordinary money transfers.
From a technical point of view BTC/USD is testing the next resistance near the $14,000 level. A breakout will open the way to the next intermediate resistance — $17,265. Traders also note a strong rise in the RSI indicator into overbought territory, which has previously prompted corrections.
However, it is worth noting that this indicator is, above all, an oscillator, and readings above 70 may indicate a strong upward trend. The market may undergo a slight correction to the $12,665 level, which would help the indicator’s values return to normal. It is also worth noting the price’s consolidation above the upper boundary of the “Triangle” pattern — such a pattern points to potential price movement well above the $20,000 level.
Daily BTC/USD chart from TradingView.
4-hour BTC/USD chart from TradingView.
Another strong fundamental component supporting Bitcoin buyers is its lack of correlation with stock indices. For example, the S&P 500 has entered a prolonged downward correction, while the leading digital asset continues to develop its upward impulse with confidence.
Investors insist that this market behaviour further confirms the idea that Bitcoin is currently acting as a store of value, outperforming gold, oil, and the US dollar in terms of returns.
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