In a tweet, Nautilus Research has pointed out that Bitcoin is presently creating a trend that has, going by history, led the bull rally of 2012 and 2017.
“Bitcoin echoes of patterns ahead of previous major breakouts.”
As per the stand alone research firm’s chart, Bitcoin had retraced a minimum of 80% from boom cycle peaks and then clumped for more than a year before beginning a sharp rally. If history repeats itself, then Bitcoin may soon undergo a big rally that could push the most king of crypto to over $100,000.
Peter Brandt, a broadly tracked analyst offering in-depth knowledge on Bitcoin, underlining the function of rising institutional involvement in the numero uno cryptocurrency.
Bitcoin — IF the current gains hold through end of Oct — is poised for the second highest monthly close ever$BTC
Institutions are increasingly involved in Bitcoin ownership
Institutions mark the value of their assets monthly pic.twitter.com/L71AMvvann— Peter Brandt (@PeterLBrandt) October 21, 2020
Furthermore, rating firm Weiss Ratings has pointed out that Bitcoin remains the undisputed leader in the crypto domain as it pushed pas the critical level of $13,000, which is BTC’s 2019 high. Echoing Brandt, Juan Villaverde of Weiss Ratings also cites institutional activity as the reason for the surge.
“Investors piled into Bitcoin this week and this rally spilled over to other crypto assets. At the same time, investors are sticking to high-quality names primarily, as we’re seeing the most strength coming out of the large caps. Bitcoin is the go-to asset for traditional investors looking to diversify their holdings into cryptocurrency. As such, any time we see Bitcoin take the lead, we can be certain that new money is entering the space. This is a prerequisite for any sustainable crypto bull run.”
As Bitcoin signals bullishness, the Crypto Fear & Greed Index offered by crypto market’s conviction tracker Alternative.me has changed to “extreme greed.” As per Alternative.me, an utmost greed figure indicates that the market is entering into overbought situation and a reversal could happen soon.
“When investors are getting too greedy, that means the market is due for a correction.”