Here’s Why a Fund Manager Thinks Bitcoin Will “Punch” Past $10,500
It’s now been several months since Black Thursday and although markets are still reeling from the aftermath, risk appetite is returning. One crypto fund advisor says that this resurgence in risk appetite will soon spill over into Bitcoin and Ethereum.
When it does, the fund manager expects the leading cryptocurrency to punch right through $10,500 and go for a knockout follow up at $14,000.
Can Crypto Break Free From Stock Market Sleeper Hold?
At the start of 2020, the stock market was capping off one hell of a bull run and setting new all-time highs. Bitcoin and the rest of the crypto market had seemingly bottomed and began to break out from a bear market.
But then the pandemic hit, Black Thursday set assets back years in valuations, and the entire global economy suffered a shakeup. Markets have since recovered, and are attempting to stabilize. It’s led to a boring, stagnant price range in stocks and Bitcoin.
The volatitly in stocks is at record highs, while Bitcoin’s is at record lows. However, the two distinctly different asset classes have been trading lock and step since the start of the year.
BTCUSD S&P500 Correlation In 2020 | Source: TradingView
As things tighten and coil in BTCUSD, the crypto market prepares for a major breakout, but any movements have relied on stocks to lead the way.
But as risk appetite increases once again, one fund manager expects this to spill into Bitcoin and Ethereum, delivering a one-two punch through resistance at $10,500 and taking the crypto market much higher.
Bitcoin To Punch Through $10,500, To Take a Swing at $14,000 Next
Whether it is via stocks propelling crypto higher or thanks to a break in the correlation with the S&P 500, Bitcoin could soon punch through resistance at $10,500.
According to a crypto hedge fund advisor, the rising risk appetite across the broader global market will soon spill into crypto assets. They claim Bitcoin and Ethereum will benefit in a big way, perhaps acting as the leverage necessary for Bitcoin to swing through $10,500.
The resistance level has kept Bitcoin back since mid-to-late 2019, and the asset has been unable to break it despite many attempts.
Now, the cryptocurrency is coiling tightly below this unbroken resistance level, and if the market reacts as the Spartan Group fund manager expects, a move to $14,000 is possible.
Interestingly, the Bollinger Bands are at the tightest point since the November 2018 collapse. Then, the crypto asset fell through repeatedly tested support at $6,000 and dropped 50%.
Now, the asset is brushing up against repeatedly tested resistance, and another 50% up from here would take the asset right back to $14,000.
BTCUSD Bollinger Bands Daily | Source: TradingView
There, BTCUSD will retest the level that sent it plummeting back down to retest lows. If the cryptocurrency can take out that key level, a retest of $20,000 is just about guaranteed.
And if Bitcoin can knockout that final contender, it will be well on its way to setting a new record bull run.