Bitcoin (BTC) price has been consolidating in a narrow range for several months. If the best cryptocurrency breaks out, Mohit Surat, partner at the Bitazu Capital Foundation, says a record milestone is inevitable.
As of July 2020, bitcoin ranges from $ 10,200 to $ 11,800 with a range of 15%. It has experienced poor volatility for a long time, with the exception of a few copies of Fickle Girl.
When Bitcoin remains stable for a long time in a narrow price range, a significant price change usually occurs.
It is unknown if the breakout will occur in the short term. But if that happens, Surout says it will take BTC three months to top $ 20,000.
Why three months after the hack for full-time bitcoins?
Based on past price cycles, bitcoin tends to move quickly after a long period. This style has historically been applied to both breakouts and breakouts.
From May 1 to July 20, Bitcoin ranged from $ 8,800 to $ 9800 and settled at around $ 9,100. After two months of BTC consolidation, it took 12 days to record a 32% rise to $ 12,123 on Binance.
Given Bitcoin’s upward trend in volatility after longer periods of consolidation, Sorout said:
“Calm before the storm. If the BTC wave breaks out today, it will most likely reach the previous $ 20,000 ATH within three months. ”
When asked about the reasons for the three-month period, Sarut said that it is based on observing fluctuations.
According to Sarut, the $ 20,000 price increase could have occurred as early as three months ago. He is not:
“A note on how aggressive groups are after periods of low volatility. It may be earlier. ”
One important variable that can be found is lower open forward interest rates compared to the former beef markets.
In particular, following the indictment of BitMEX by the US Commodities and Futures Trading Commission or the CFTC, overall future open interest has declined. This could lead to a more stable and gradual trend for Bitcoin, unlike previous bulls.
Open interest in BitMEX from the beginning of the year to the current date
Factors That May Increase BTC Speed in Q4 and Throughout 2021
The strong story behind Bitcoin’s boom cycle approaching 2021 remains the latest increase in institutional demand.
On October 17, Grayscale CEO Barry Silbert said the company has a record $ 6.4 billion in assets under management. Silbert confirmed that there was a “massive influx” at the company this week.
Institutions that acquired Bitcoin, such as Square and MicroStrategy, have said they see Bitcoin as a potential loan. In this case, it could mean that many institutional investors are accumulating BTC and are not going to sell in the near future.
Bitcoin price remained relatively unchanged throughout October despite positive news on institutional flows. But PlanB, the company that innovated from equities to energy (S2F), said there could be asymmetric returns over time. He said:
“Why isn’t the price of bitcoin going up because of all this institutional buying? Who is selling? The price of bitcoin is exactly where it should be, with over $ 10,000 and waiting for one moment … unequal income … patience! “