Bitcoin at $20,000 by the end of the year?
Julien Moretto – 28 Oct 2020
The bull cycle is gaining steam for the last few days on the cryptocurrencies market. Bitcoin, up nearly 17% over the last seven days, is now approaching €11,850 ($14,000) and is on the verge of surpassing its 2019 high of $13,300. The price movement that began in July and has resumed more beautifully since October seems to confirm the construction of a healthy uptrend. The context is also favorable: recent news have echoed companies and investment professionals investing in Bitcoin, such as Square. The strong correlation between the price of Bitcoin and that of the US stock exchanges, which has persisted since March 2020, is strongly decreasing in favor of cryptocurrencies. Trading volumes are also on annual highs. All these elements point to a much higher Bitcoin price by the end of the year.
All indicators seem to be green, especially since a certain number of altcoins, which were struggling to appreciate last week, are catching up in recent days, like Ethereum which signs a weekly appreciation of 7%. The only downside comes again from the anxiety around the health crisis. If investors start panicking again, it will be a moment of truth for Bitcoin, where everyone will observe whether Bitcoin is being sold as a risky asset or on the contrary is proving resilient by being kept in portfolios.
- According to CoinGecko, market capitalization jumped significantly to $413 billion from $377 billion last week.
- Bitcoin’s dominance continued to increase to 61.4%, up from 59.8% last week.
- The best performance of the top 50 is to be attributed to Litecoin (LTC) with +24.2% over one week.
We invite you to discover our analysis in video (in french and dated October 27) 🙂 :
Partial profit taking
- Another great week for Bitcoin, up 14.6% over seven days and trading around €11,640 ($13,700) on October 28. The uptrend is clear on all timeframes. The price is reaching a zone between 11500€ and 12150€ (13500$ and 14300$) in which we will take partial profits. We insist on the fact that given the power of the trend, it is strategic to take advantage of the potential price retracements to buy or accumulate. A first zone will be favourable for this: that between 10280€ and 10600€ (that is to say $12170 and $12500). This trend remains valid as long as the price remains above €9000 ($10,600).
- Ethereum (ETH) also signs a nice week with +7.4% to rub at €336 ($397) this October 28. But assets have lost ground in recent days compared to Bitcoin. The increase was less impressive. However, from a technical point of view, we had a buy signal with the break of the upper bound of the range at €316 ($390). The chart even came back to test this level as support at the beginning of the week. A price action that is interpreted as bullish. If the market as a whole and especially Bitcoin remains bullish, there is still time to buy on Ethereum to play at least one move up towards the next resistance at €370 ($445). A new high for 2020 on Ethereum is possible in the coming weeks. The short-term bullish scenario will be invalidated if the price falls back below 316€ (390$).
- Litecoin (LTC) is up 24.6% this week to €49.40 ($58). But it is one of those altcoins that suffered from the sharp drop last March related to Covid and never really recovered, unlike Bitcoin. The support of 34 to 38€ (40 to 45$) caused a strong rebound. If you are positioned to buy from this zone, you should hold this position. For those wishing to buy on Litecoin, more confirmation is needed before positioning for a strong uptrend. The price will need to break through the €55 ($65) pivot and close higher on the daily timeframe to give a buy signal. Profit-taking targets will then be in the range of $73-$81 ($86-$96).
Tops & flops of the week (top 50 marketcap)
1- Litecoin (LTC) : +24,2%
2- Chainlink (LINK): +18,2%
3- Polkadot (DOT): +16,5%
1- NEM (XEM) : -13,2%
2- Crypto.com coin (CRO) : -9,8%
3- UMA : -9%
In this article, all information is given for information purposes only, even if it has been established from serious and reputable sources. It does not constitute an offer by Coinhouse to buy or sell digital assets, or an offer to provide services on digital assets, nor does it constitute advice, encouragement or a recommendation to operate on the digital assets in question. It constitutes simple information over which the user retains absolute control. We inform you that if you choose to invest in digital assets, you must be aware of our general terms and conditions of sale (https://bit.ly/2FGW2ek) and accept the various risks listed and defined on our legal warning page (https://bit.ly/3c4sQKc).
Become an informed investor!
Your email is secure, you can unsubscribe at any time.