The cost to purchase one Bitcoin will soar towards $25,000 in January 2021, said Parablolic Thies, a prominent technical analyst, on Thursday.
“I may not have been bullish enough on this new Bitcoin trend that’s coming together,” the pseudonymous entity explained.
“I want $25k and expected it in January, fully thinking December would give $13k lows beforehand. We may skip the $13k part by how [the trend] looks [right now].”
The statements appeared as Bitcoin refused to extend its bearish correction after rallying towards $20,000. Even this Thursday, the flagship cryptocurrency found a strong support level near $18,100 and rebounded above $19,500.
That came as a surprise to many analysts that had anticipated Bitcoin to fall by at least 30 percent after its enormous bull run from $9,800 in September 2020 to $19,915 in December 2020. The view was more fractal-dependent. Here’s a tweet from Parabolic Thies from November 27 that shows the same.
As expected in my post on #BTC last week, here's an updated look at what I'm seeing as probable for #bitcoin as we head into Dec.
My entry orders range $13-14k, which puts the correction at 30%
Full analysis: https://t.co/mmM5Qj3RuJ
Mentioned post: https://t.co/jHkxpVcMru pic.twitter.com/9AJbe0Mx4q
— Parabolic Thies ♔ (@KingThies) November 26, 2020
But the switched bias shows that even the most anti-risk traders are forcibly looking at the potential of a “bull-tard” price rally. For instance, prominent market analyst Josh Rager also noted that Bitcoin would hit $20,000 as long as it holds $19,200 as its short-term price floor.
Bitcoin on Wall Street
Part of the reason is institutional interest. The last few weeks and months have witnessed an influx of mainstream capital into the Bitcoin market from billionaire investors, asset management firms, and mere companies that treat the cryptocurrency as their hedge against an inflationary outlook.
The Federal Reserve is buying billions of dollars worth of US Treasurys and corporate debts every month to keep them afloat through the coronavirus pandemic. Meanwhile, it has also reduced benchmark interest rates to near-zero — since March 2020.
That has taken appeal off two safe-havens: short-term bonds, which are now returning minimal yields, and the US dollar that has fallen to its April 2018 low due to oversupply. Bitcoin, on the other hand, has rallied by almost 400 percent from its mid-March nadir.
— Shayan Edalati (@S_Edalati) December 3, 2020
Just this Thursday, Bitcoin gained a further foothold on Wall Street after S&P Dow Jones Indices — a joint venture between S&P Global, the CME Group, and News Corp — announced that they would launch cryptocurrency indexes in 2021. That expects to raise more awareness about Bitcoin among institutional investors.
The Fed has inclined that it would keep its inflation target above 2 percent in the coming years. That may prompt investors to reduce their exposure to long-dated government debts. It means more inflows into the Bitcoin market to hedge it.