Bitcoin (BTC) Is Close to Its New All-Time High

Bitcoin (BTC) Is Close to Its New All-Time High

Source: iStock

The BTC rate on some exchanges broke the $60K level. Forecasts about the new update of the all-time high look realistic.

The positive news background speaks in favor of the growth of the market and the king of cryptocurrencies. Bloomberg reports that the first bitcoin futures ETF could be approved as early as next week. ProShares and Invesco Ltd. have applied for such funds. Previously, the SEC has already approved ETFs related to cryptocurrencies and bitcoin. It is a fund managed by Volt Equity that allows retail investors to buy shares in companies with cryptocurrencies on their balance sheets. However, the approval of bitcoin futures ETFs is much more important for the market.

Bitcoin soared by 3% and is now correcting, but is likely to continue to rise. Experts are awaiting the ATH $64.8K update that was set in April and try to predict to what levels bitcoin may rise in this cycle.

For a long time, experts have been discussing the correlation between bitcoin and gold. Every expert and his dog call BTC “a digital gold”. Advanced analysts went further and tried to compare the dynamics of prices for gold and BTC. It turned out that the chart of bitcoin is very similar to the chart of gold price after the United States abandoned the free exchange of dollars for the yellow metal in 1971.

The famous investor Paul Tudor Jones notes that then gold became a futures product and grew continuously for 10 years, from $35 per troy ounce to $850. The growth was 2300%. This was followed by a 50% correction and consolidation of around $400, which lasted 20 years. If bitcoin futures affect the price of BTC in the same way, then we will have tothemoon to incredible levels. Indeed, in the middle of last year, gold was worth almost $2,000. Gold futures are currently trading at around $1,780.

There is also a popular opinion among the expert community that the cycles of ups and downs of bitcoin lead to changes in its price by 80%. This was the case in 2014 when BTC dropped from $850 to $200. And at the end of 2018, BTC was worth $3,200 after dropping from $16K high at the beginning of the year. Using Fibonacci sequences, a technical analyst known as TechDev notes on Twitter that the current $47K – $60K range could be the bottom of a forthcoming bear cycle. In this case, the predicted limit of the BTC bull rally is around $300K.

As for the fundamental factors, the outflow of BTC from the exchanges speaks in favor of the rally. According to the analytical company Glassnode, this process has been ongoing since July until now. And all this time, bitcoin has been rising.