Bitcoin Price Rally Will Peak Out Early in 2021, according to CNBC Report
Bitcoin has been on a tear late in the last quarter of 2020, reaching a new all-time high above $28,000 on Sunday, but according to one institutional trader’s analysis—BTC price could peak out early in 2021, providing a prime opportunity to buy the dip.
The Bitcoin price is currently at $26,774.36 down is up by nearly 20% over the last seven days. As institutional money and stimulus money printing continues to drive the price higher, one analyst’s charts indicate that the BTC price surge may peak early in 2021.
Speaking on CNBC’s Trading Nation, Mark Newton, Founder and President of Newton Advisors said that his analysis indicated that the Bitcoin bull run will continue in the short term but will peak out and take a rest early in 2021.
Newton told CNBC:
“It is still quite bullish on an intermediate-term basis given that it just broke out to new all-time highs[…] think we have a ways to go. Near term, my cycle composite shows us peaking out in early January.”
The Newton Advisors founder told CNBC that Bitcoin’s is mainly gaining traction with institutional investors and although Google searches for Bitcoin are up over 750%, they still not close to reflecting the interest that was seen in 2017 when Bitcoin first had $20,000 in sight.
Another Chance to Buy the Dip
Newton’s technical chart uses three different Bitcoin cycles, the main one being 273 days, to track changes in the crypto’s movements and it indicates an upcoming turn change in Bitcoin’s direction upward direction.
Source: CNBC Trading Nation
Newton explained, “All those years where we had a stellar Q4 we reversed course in trend back in late December, early January, and actually went lower […] So, I think there will be some opportunity [for] investors to be able to buy dips in crypto and Bitcoin particularly.”
Newton has high expectations for Bitcoin, Ethereum and Litecoin price in the long-term but he told CNBC that he would be looking to cash out as soon in the next one or two weeks as he believes there will be an opportunity to buy the BTC dip in Q1 of 2021.
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