Analysts are predicting a bullish long-term outlook for bitcoin, suggesting the cryptocurrency could hit its all-time high of $20,000 by Christmas, but not before enduring a correction in the near future.
According to CryptoCompare data, the price of BTC has been steadily moving up since late last month, going from $11,000 to over $15,800 at press time. The cryptocurrency hit $16,000 earlier today, but suffered a short correction shortly after.
Despite the price rise, analysts are cautiously looking at the cryptocurrency’s outlook. Its Relative Strength Index (RSI) is now overbought, while its MACD also points toward a correction. The Bitcoin Fear & Greed Index is also flashing “extreme greed,” which usually means a correction is due.
Speaking to CoinDesk Patrick Heusser, a senior cryptocurrency trader at Crypto Broker AG, said the price of BTC may consolidate between $14,000 and $16,000 in the next few weeks. Chris Thomas, Swissquote Bank’s head of digital assets, predicted a consolidation period before another bull run by Christmas.
Other analysts predicted a correction of around 20% based on historical trends. Whenever the price of bitcoin made a continuous price increase, data shows the rise was followed by a correction between 20% and 30%. The correction, they said, comes before the uptrend is resume.
This uptrend could be resume in late December, and the price target for BTC is of $20,000, with anything above it being uncharted territory for the cryptocurrency.
Heusser, speaking to the publication, noted that a rally in altcoins is also a possibility once the price of BTC starts correcting. Ethereum, for example, has already broken its resistance at the $400 mark and is now trading at $460.
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