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The Bitcoin price was still unruly three days ago when it was supposed to break the previous year’s high. But the small correction of October 28 came to an abrupt end and the price was able to stabilize at $ 13,000.
The bulls took over the helm again and for a short time the Bitcoin price knocked cautiously at the $ 14,000 mark. At the moment it ranks just below and is very close to the previous year’s high, which was slightly above 13,800 US dollars.
The current situation is a culmination point for the market, because it must now be decided whether this price zone is too strong a resistance or whether one can establish oneself well above the previous year’s high. If not, there is a risk of a large sell-off because then many investors could get the idea that it is better to make and secure profits.
But despite these possible residual concerns, the overall situation tends to look bullish. After all, the Bitcoin price is nominally above the previous year’s high. If the closing price in the weekly chart can hold the level, nasty surprises should be largely excluded. A look at the monthly chart reveals that October 2020 was truly golden for BTC and that Bitcoin has so far been up over 3,000 US dollars.
BTC wants big money
There is currently increasing evidence that institutional investors want at least part of their capital to be invested in Bitcoin. So far, the market has been dominated by small investors and a few large investors.
Expansions by financial service providers such as Fidelity’s to Asia make it clear that Bitcoin plays a serious role in wealth management. The advertised brand of 1 to 3 percent share in the customer portfolio doesn’t even seem particularly risky. Paul Tudor Jones and Chamath Palihapitiya have also recently spoken out in favor of Bitcoin as a hedge that does not correlate with the movements of other markets and advocated a similar allocation in the portfolio. Together with the decision of MicroStrategy and the personal investment of CEO Michael Saylor, this idea was brought into the public eye even more effectively.
Note: This article is not investment or investment advice and only reflects the personal opinion of the author. Please note our full disclaimer.