- A massive influx of institutional capital into the cryptocurrency industry seems to be pushing Bitcoin’s price up.
- Given the lack of resistance ahead, it is likely that BTC will revisit previous all-time highs.
- Nonetheless, historical price data shows that the flagship cryptocurrency may soon suffer a steep correction.
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Bitcoin appears to have entered a new parabolic advancement. Its price has risen more than 80% since late September without any significant pullbacks.
However, a particular technical indicator estimates that steep correction is underway.
Strong Fundamentals Behind Bitcoin
Bitcoin’s uptrend seems to be fueled by a massive influx of institutional capital into the cryptocurrency industry. As uncertainty grows around the global financial system’s stability, large investors are flocking to the market.
Billionaires like Stanley Druckenmiller and Paul Tudor Jones, some of the most prominent, have written at length about the long-term impact that the massive quantitative easing programs implemented worldwide will have on the economy.
As central banks continue printing more money to avoid a financial downturn, investors are looking for an asset that serves as a hedge.
BTC’s buying pressure is at record highs, which will likely lead to new all-time highs before the end of the year.
BTC’s recently established support base backs up this optimistic thesis. There is also little to no resistance ahead of it, based on IntoTheBlock’s “In/Out of the Money Around Price” model.
The Fibonacci retracement indicator shows many bullish targets will be met if the upward pressure continues. When measuring this technical index from the high on Dec. 17, 2017, of $19,700 to the low on Dec. 15, 2018, of $3,100, Bitcoin will indeed revisit previous all-time highs.
But if FOMO kicks in, the uptrend may be strong enough to push prices beyond…