The majority of some of the industry’s most respected crypto analysts agree that a new all-time high for Bitcoin is highly likely in the coming days.
Bitcoin bludgeoned its way through the psychological barrier of $60,000 on Friday on whispers that the US Securities and Exchange Commission might be on the cusp of granting approval for a Bitcoin Futures ETF.
It has since held on to ground above the $60k mark, even briefly testing $62,250 as it came within a whisker of nudging the $64,899 figure it peaked at on April 14. And, while plenty of experts would suggest it hasn’t looked entirely comfortable above $60k, there is certainly unity on the prospect of Bitcoin breaking its all-time high very soon.
Simon Peters, crypto asset analyst at investment platform eToro, said a rise above $60,000 had been on the cards for a while, but urged investors not to be distracted by the likelihood of a new all-time high.
“The current cycle continues to mirror that of 2013, suggesting that Bitcoin is still very much on an upwards trajectory, though we may see some resistance at the current level,” he said.
“The prospect of a new all-time high within a matter of weeks should not distract investors from their long-term goals, and a patient approach remains the most prudent.
“Nevertheless, the market is clearly reacting positively as we edge ever closer to the ‘holy grail’ of a Bitcoin ETF of the underlying asset.”
Nod of agreement over Bitcoin all-time high
His words were echoed by Mikkel Morch, executive director at hedge fund ARK36, but the nod of agreement also preceded a warning that a pull-back could also be around the corner.
“Bitcoin blockchain data, with the 200-day and 100-day MAs poised to form a bull cross, and the spike in the illiquid supply, do give reasons to be very bullish in the medium term and suggest that BTC is ready for a strong move upwards,” he offered.
“However, a Bitcoin ETF approval is likely already priced in at this point. Investors should be aware that the hopes for a sustained rally above the $60K barrier and further through the previous all-time high may as well turn into ‘buy the rumour, sell the news’ scenario.
“In any case, it is worth noting that the price went from $40k to $60k in an almost straight line and it would be natural for Bitcoin to take a breather after such a long run up. Therefore, after setting a new ATH, a slight, short-term pullback is likely to be expected.”
Martha Reyes, head of research at brokerage Bequant, also believed the news of a Bitcoin futures exchange-traded fund were already priced in, but suggested a ‘spot ETF’ might be better news further down the line.
“US institutions in particular have been fuelling the rally as evidenced by activity on the CME and the basis flippening on the CME over the retail led exchanges,” she explained.
“Late Thursday we saw another leg up as Bloomberg leaked that the ETF would likely be approved and start trading this month. Ideally, a spot ETF would be best as it would be less costly and more efficient, but this is a good start indeed.
“The news seems largely priced in at this point but we remain positive on Bitcoin into year end and would be buyers on any pullback towards 50k.”
Meanwhile, Cryptohopper CEO Ruud Feltkamp turned to the history books.
“Bitcoin behaves exactly as predicted,” he said.
“October is almost always a good month historically, and this year is very similar to 2017.
“Before Bitcoin breaks its ATH, first it has always had trouble breaking through the great resistance. Once broken though, it will be a long volatile road to the top. In 2017, the top was between Christmas and the New Year. Will this year be the same? I think so.”
Will Morris of GlobalBlock was keen to circle a potential issue over the Bitcoin balance levels across various exchanges.
“All-time highs of nearly $65k will be the next resistance level before a potential price discovery phase,” said the sales trader.
“While the BTC price has fiercely rallied over the past few weeks, Bitcoin balance on exchanges remains at the lowest levels in nine months, indicating investors are holding Bitcoin in wallets rather than readying themselves to sell.”