Mark Newton: The Good Fortune May Soon Halt for a While
It’s always upsetting to start the new year with pessimistic or depressing headlines, but in a recent interview, Newton pointed to a technical chart to demonstrate how the bitcoin price could eventually be changed in 2021.
This has become one of the greatest worries for crypto traders and investors around the world. So far, 2020 has been oddly close to 2017, when Bitcoin first hit its all-time peak of more than $19,000 per unit. However, 2018 – the next year – delivered a monster correction to the world’s largest and most famous market cap cryptocurrency.
At the end of the day, the commodity lost more than 70% of its worth by the time Thanksgiving had rolled in, and it took only five months for the currency to see some sort of rebound.
This year was massive for bitcoin in that it hit a new all-time high of more than $28,000, bringing the previous peak to shame by almost $9,000. There was undoubtedly a doubt in the back of many traders’ minds, “This year has gone too far… How will the following year be any different? ”
According to Newton, the response may be “very different.”
“[Bitcoin] is still quite bullish on an intermediate-term basis given that it just broke out to new all-time highs. I think we have a way to go. Near term, my cycle composition shows us peaking out in early January.”
He attributes the spike in the price of bitcoin to two main factors. The first is that institutions are becoming more conscious of and willing to participate in BTC. They no longer see it as a simple speculative commodity, but rather as a store of value or a hedge weapon that can keep their money secure during periods of economic conflict.
In addition, he notes that Google’s search for bitcoin is up over 750 percent this year, meaning that demand has soared to unprecedented heights.
Newton further states:
“[With] SPACs right now, you can make money at ten, 15, 20 percent a day. I just don’t think that investors have quite the appetite for crypto while the institutions are certainly very much heading in that direction.”
We’ve Seen This Before
He also said that bitcoin has a long tradition of slinking back once it enjoys a solid fourth quarter, as it definitely did in 2020. It mentions:
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.
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