Bitcoin has stalled out after reaching a record on Wednesday, but strategists are already setting out their stalls for how high the next rally will take it — US$100Â 000 or only $90Â 000.
The digital currency is sitting in the low $60Â 000s as traders watch to see how the landscape shifts now that the first US bitcoin futures exchange-traded fund are in play. The largest cryptocurrency was up 0.6% to $63 077 as of 12.25pm in Hong Kong on Friday after peaking on Wednesday at nearly $67Â 000. The move into unprecedented territory had chartists looking for new target levels — not quite the $168Â 000 or $1-million seen by some enthusiasts, but still strongly bullish.
“Initial upside targets for bitcoin above $65 000 lie near $72 500, then $89 000, and thought to be definitely within reach on this breakout of former peaks,” Fundstrat wrote in a report Wednesday. The last number would be a 100% extension of the rally up from last March’s lows, it said.
Bitcoin reached its record amid anticipation of the US ETFs, as well as continued institutional investment in crypto assets, and possible buying by bigger investors known as “whales”. There are plenty of people projecting a gain to $100 000 by the end of the year, including BitMEX CEO Alexander Hoptner, who suggested that level in an interview with Bloomberg Television on Friday.
Katie Stockton, the founder of Fairlead Strategies, said on Monday — before the latest record — that a breakout to new highs provides a positive long-term trend that should see the digital currency target $89 800, based on a measured move projection. — Reported by Joanna Ossinger, (c) 2021 Bloomberg LP