The next three months are very important as the price of Bitcoin can reach up to $20,000. After remaining in a particular range for a long time, the crypto community can see a bullish breakout soon.
Breakout in Next Three Months
Bitcoin has been trading between $10,200 and $11,800 since July 2020. Over the last three months, the top digital asset has shown little volatility. According to experts, a breakout is likely to happen if Bitcoin stays calm for a long time.
Mohit Sorout, the founder partner at Bitazu Capital, argues the primary cryptocurrency will claim $20,000 in the next three months. There is a reason behind this prediction as breakout or breakdown normally happens after trading in a narrow range. For instance, Bitcoin showed a 32% rally after trading between $8,800 and $9,800 from May 1 to July 20. Sorout stated:
“Calm before the storm. If $BTC was to break out today, it would most probably reach its previous ATH of $20k within 3 months.”
After the Commodities and Futures Trading Commission charged the largest derivatives exchange BitMEX, the future open interest has been plunged significantly. The decline in futures open interest can result in a gradual surge in Bitcoin’s price.
There are many factors that speak of incoming bullish sentiments in the cryptocurrency markets, but the interest of institutional investors is a macro factor. For instance, Grayscale CEO Barry Silbert predicts a “big inflows this week” as the capital under management has reached $6.4 billion. Other giant institutions, such as MicroStrategy and Square, bought BTC with the intent to hold BTC capital rather than selling.
A $3 trillion stimulus relief package is also on the way which may the push price value of the world’s top digital asset upward.
Since the start of October, the price value has been in steady mode. Stock-to-flow creator PlanB stated crypto members should keep patience as “asymmetrical returns” are coming.
A recent report unveils investors’ interest in Bitcoin has increased as Chicago Mercantile Exchange witnessed a record increase.
Currently, Bitcoin is trading at $11,325 with a slight decrease of 0.43% in the previous 24-hours.