Bitcoin Inches Closer To USD 15,000, Analysts Eye Higher Levels

Bitcoin Inches Closer To USD 15,000, Analysts Eye Higher Levels 101
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After surpassing USD 14,000 yesterday, bitcoin (BTC) jumped above USD 14,800 today, reaching another almost three-year high, while analysts expect even a stronger rally.

At pixel time (12:50 PM UTC), BTC trades at USD 14,871 and is up by almost 8% in a day and 13.5% in a week. The most popular cryptocurrency is also the best performer among the top 20 coins by market capitalization today and in a week.

Also, bitcoin dominance, or the percentage of the total market capitalization, moved above 64.5%, or a level that was last seen in June 2020.

According to Northman Trader founder Sven Henrich, as long as BTC can remain above the breakout trend line it has “significant technical room higher.”

Bitcoin Inches Closer To USD 15,000, Analysts Eye Higher Levels 102

“Also note BTC is showing some retracement action and has room lower for a potential retest of the trend line. But note that inside the larger wedge consolidation a potentially much more bullish pattern has emerged, that of a potential inverse which would point to near [USD] 17,000,” he said in his note yesterday.

He added that “a true test for BTC as a hedge against fiat currency destruction” would be if BTC and stocks decouple from each other.

“For example: A drop in equities while BTC races toward the 17K technical target. That might convince to support the argument,” Henrich said, adding that “We’ll likely know more on that front in the next 3 months or so.”

Meanwhile, Mike McGlone, a commodity strategist at Bloomberg Intelligence, said that previous BTC resistance at about USD 10,000 may transition toward USD 20,000 in 2021.

“Certain supply leaves demand as the primary price metric, and most indicators remain positive,” he was quoted as saying by Bloomberg. In October, he said that “bitcoin is on track for USD 100,000 in 2025.”

However, Empire Financial Research’s Whitney Tilson said on Wednesday that he still regards cryptocurrencies as “a techno-libertarian pump-and-dump scheme” and recommends most investors avoid them, the report added.
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