Bitcoin (BTC) has made a stellar comeback from its March lows in 2020 and this performance is getting noticed by institutional investors. Recently Rick Rieder, BlackRock’s CIO of fixed income, said that Bitcoin could replace gold as it is “more functional than passing a bar of gold around.”
Comments like these are a positive sign as they demonstrate that the narrative of Bitcoin being increasingly viewed as digital gold even among traditional investors has been gaining wider acceptance.
A new report by crypto investment firm Pantera Capital attributes the recent uptick in Bitcoin’s price to PayPal’s new crypto service. According to Pantera, data shows that “PayPal is already buying almost 70% of the new supply of bitcoins” and Cash App the rest 30%, which has created a real supply shortage.
Bitcoin naysayers have long described the asset as too volatile but research by investment management firm Van Eck found that about 51% of the stocks on the S&P 500 are either equal or more volatile than Bitcoin on a 90-day basis.
Findings such as these could attract more investors to cryptocurrencies if the data became widely known.
Investors are now wondering if Bitcoin price hit a new all-time high next week and whether altcoins will follow?
Let’s study the charts of the top-five cryptocurrencies to determine the path of least resistance and spot the critical levels on the upside and the downside.
Bitcoin (BTC) formed a Doji candlestick pattern on Nov. 21 and that was resolved to the downside today. In a strong uptrend, the corrections usually last for one to three days, and then the trend resumes.
The strong rebound from the intraday lows today suggests that buyers are accumulating on each dip. If the bulls can now push the price above $18,695.75, a rally to the all-time high is possible.
If the buyers can drive the price above $20,000, the BTC/USD pair could pick up…