$28600! Bitcoin went short and skeptical, up more than 295% this year

Throughout 2020, almost all major assets are rising. But bitcoin must be at the top of the list for the most aggressive assets: it has risen 295% so far this year. On Wednesday, bitcoin broke through the $28600 mark in intraday trading, seemingly within walking distance of $30000. Can bitcoin’s rise last into next year? On Tuesday, michalvan de Pope, an analyst at cointegraph markets, stressed that $27500 was the key resistance level for bitcoin, and that bitcoin’s breakthrough would pave the way for a new record high. Some analysts also believe that bitcoin may withdraw at any time. If there is a sharp correction, bitcoin may fall to the current support level of $19500, which means that bitcoin’s callback rate may reach 46.7%. Mark Newton, the founder and President of Newton advisors, told CNBC on Monday that he might clear bitcoin positions in the next week or two. Newton believes that according to the technical chart, the rise in bitcoin may pause in 2021: bitcoin has just broken through an all-time high, and the asset is still quite bullish in the medium term. However, bitcoin’s rising momentum will not continue without interruption. My cyclical composite index shows that bitcoin’s short-term rally will peak in early January. Newton said bitcoin’s weekly chart and relative strength index show that investors, especially institutional investors, are increasingly interested in bitcoin. At present, people’s search volume on Google for bitcoin has increased by about 750% year-on-year, but it is still not higher than the high level in 2017. Newton’s other chart (using three different bitcoin cycles, with a major period of 273 days) tracks the change in bitcoin prices, suggesting that the direction of bitcoin prices is about to change: in those years when bitcoin performed well in the fourth quarter, the rally was often reversed at the beginning of January. Therefore, I think there will be a bargain hunting opportunity for investors in the first quarter of next year.

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