Bitcoin (BTC) has had a wild year. The asset dropped from $10,500 to $3,860, before flying up past $11,000, all since February. Given the overall mainstream U.S. market environment, as well as the price action seen in the crypto space, one trader sees all-time high ranges by 2021.
“With gold nearing a new all-time high, and equity asset prices getting more expensive, I believe the market is anticipating inflation and a weaker dollar,” crypto podcaster and trader Brian Krogsgard, also known as Ledger Status on Twitter, told me in a July 22 message. “I struggle to see the downside for bitcoin in such an environment,” he added.
“I don’t know how far the market could go, but I anticipate bitcoin will challenge prior highs in 2021.”
Since Krogsgard’s comment, Gold broke its all-time high near $1,830, according to Trading Economics, sitting a press time price of $1,942. U.S. stock markets have also seen booming prices, all amid contrasting high unemployment numbers after months of Covid-19 prevention measures.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Bitcoin Breaks Long-Time Resistance
Over the past ten months or so, bitcoin has struggled to break past a price level near $10,540, as per TradingView.com data. Since October 2019, the asset travelled up to price zones between $10,430 and $10,540 on three separate occasions — each months apart. Each time bitcoin gathered enough momentum to make an attempt at breaking that price zone, the asset faced selling pressure, unable to rally past the level. Falling prices followed each effort.
Bitcoin finally rocketed past $10,540 on July 27, however, rising from $9,940, all the way up to $11,400, all in a 24-hour span. The asset now sits at $11,032 at press time. According to Krogsgard, $10,200 held as a significant level in the asset’s journey. “We blasted through an important level at $10,200 — a previous weekly high,” he told me in a message on July 27.
“Breaching several areas of clear resistance forced stop market buys and forced sellers out, causing rapid expansion all the way to the next key weekly around $11,400,” he added, referring to market dynamics spurring the move.
Mental Level Broken As Mainstream Hype Stirs
Crypto trader and Brave New Coin (BNC) analyst Josh Olszewicz, known as CarpeNoctom on Twitter, also weighed in on the BTC scene, noting $10,000 as a notable price point. “Five digits (10k) was a big psychological resistance barrier for price, so once that was crossed, much easier to go higher,” Olszewicz told me in a July 27 message.
“We also had some legacy people excited about the BTC price chart,” Olszewicz said, noting mainstream entities interacting with the action. CNBC pitted the digital asset against gold as a store of value — a concept the crypto industry has boasted for years now.
Olszewicz pointed toward a bevy of economic factors around bitcoin’s price movement, including mass money printing activities across the world, gold’s position in unexplored price territory past its all-time high and the U.S. dollar’s decreasing value against other world currencies, with “BTC catching up.”
The trader also mentioned other impactful events, including European Union Covid-19 spending and crypto-based decentralized finance (DeFi) hype.
Some parties still refuse bitcoin as a valid asset, however. Gold bug and financial commentator Peter Schiff has made a number of comments against the asset over the years, including a July 26 interview with Morgan Creek Digital cofounder Anthony Pompliano, in which Schiff said bitcoin has no commodity properties, as opposed to gold.
Disclaimer: I actively trade cryptocurrencies, as well as hold a small amount of BTC, ETH, LTC, XMR, NEO, ZEC, BEAM, BCH, DASH, LINK, XTZ and various insignificant other altcoin positions.