Here’s Why a Fund Manager Thinks Bitcoin Will “Punch” Past $10,500

It has been several months since Black Thursday, and while markets are still recovering after the aftermath, risk appetite is returning. A crypto fund advisor says that this revival of risk appetite will soon spill over into Bitcoin and Ethereum.

If so, the fund manager expects the leading cryptocurrency to go through $ 10,500 and go for a knockout follow-up for $ 14,000.

Can Crypto get rid of stock market holding?

In early 2020, the stock market closed a tremendous bull run and set new record highs. Bitcoin and the rest of the crypto market had apparently bottomed out and started breaking out of a bear market.

But when the pandemic hit, Black Thursday put assets back in valuations for years, and the entire global economy suffered a shock. The markets have since recovered and are trying to stabilize. It has led to a boring, stagnating price range in shares and Bitcoin.

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Stock volatility is at all-time highs, while Bitcoin volatility is at an all-time low. However, the two distinctly different asset classes have been trading since the beginning of the year.

BTCUSD S&P500 Correlation In 2020 | Source: TradingView

As things tighten and curl up in BTCUSD, the crypto market is preparing for a major outbreak, but all movements relied on stocks to lead the way.

But as risk appetite increases again, a fund manager expects this to spill over into Bitcoin and Ethereum, creating a one-to-two resistance at $ 10,500 and bringing the crypto market much higher.

Bitcoin to push through $ 10,500 and then take a swing of $ 14,000

Whether through stocks pushing the crypto higher or thanks to a break in the correlation with the S&P 500, Bitcoin could soon break the resistance at $ 10,500.

According to an crypto hedge fund advisor, the rising risk appetite in the broader world market will quickly transition into crypto assets. They claim that Bitcoin and Ethereum will benefit in a big way, perhaps as the leverage needed to swing Bitcoin by $ 10,500.

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The resistance level has held back Bitcoin since mid to late 2019 and the asset has failed to break despite many attempts.

Now the cryptocurrency is running tightly below this uninterrupted resistance level, and if the market responds as the Spartan Group fund manager expects, a move to $ 14,000 is possible.

Interestingly, the Bollinger Bands are at their tightest point since the November 2018 collapse, then the crypto asset fell to $ 6,000 through repeatedly tested support and fell by 50%.

Now the asset is being polished by repeatedly tested resistance, and another 50% from here would bring the asset back to $ 14,000.

bitcoin btcusd bollinger bands

BTCUSD Bollinger Bands Daily | Source: TradingView

There, BTCUSD will retest the level it dropped back down to retest lows. If the cryptocurrency can disable that key level, a $ 20,000 retest is virtually guaranteed.

And if Bitcoin can beat that last contender, it’s well on the way to setting a new record bull run.

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