Bitcoin tops $67.000 buoyed by "buy the rumor and the fact" sentiment
By Noemi Jansana / Alejandra Zamora
Date: Thursday 21 Oct 2021
(Sharecast News) - Bitcoin reached new record highs on Wednesday, without the need of huge price hikes, or fireworks in the cryptoverse world. Bitcoin hit new record highs, up to around $67,000, which is where an area of resistance resides according to the technical patterns projected by the Onyze team. Its founder, Alvaro Rubio, already warned in statements to 'Bolsamania' previously, that the price would run into this level in its ascent to $100,000. Experts 'blame' the debut of the ProShares 'crypto' US ETF on Wall Street. The consensus reached by all the analysts consulted is that the rises will continue, despite them also keeping an eye on a possible profit-taking move.
"Buy the rumor and the fact seems to be the message in the crypto-verse," comments Craig Erlam, analyst at Oanda. "A landmark moment for the cryptocurrency space as it continues to strive for mainstream adoption. But not one, it seems, that's triggered any significant profit-taking," he adds.
The boom in Bitcoin, which trades above $65,000 on Thursday, in the month of October is 50%, which has lifted annual gains to 130%. Other 'altcoins' have also seen five-month highs, such as Ethereum, which has surpassed $4,100.Total capitalization stands at $2.63 trillion, of which Bitcoin accumulates $1.22 trillion, with a 46.6% dominance.
The market's fear, however, is a repeat of the behavior of four years ago. When the first futures contracts saw the light of day on the Chicago Mercantile Exchange (CME) on December 17, 2017, Bitcoin touched $20,000 after a 2,000% rise from the previous two months. But it then triggered a low-margin market that lasted a year. "Often in situations like this, the build-up to an event can spur a buying frenzy before profit-taking quickly kicks in," Erlam explains.
"Of course, the crash that followed was extreme and looks much less likely this time around," he states, before adding, "However, it´s interesting to see price not taking off though which may suggest it won't be plain sailing for crypto enthusiasts. But it's hard to imagine further gains not following in the coming months."
The market's sights are set on $100,000, with experts pointing to $70,000 or $80,000 as the price of the asset towards the end of the year. "Now it's time to think about this next psychological level," says Alejandro Zala, Bitpanda's country manager in Spain. "Everything indicates that we are already in a new bullish cycle, what we do not know is its duration and its price limit," he adds.
As for Bitcoin's October 20 high, Zala comments that "this new valuation is just one more step for its consideration as a consolidated digital asset, conceived by many as the digital gold of this generation. Bitcoin has an incredible potential which more and more institutional and individual investors are aware of every day."
"It should be difficult to find an investment portfolio without a cryptocurrency presence after the support shown by the industry, major companies, opinion leaders, institutional investors and, of course, the performance of the asset itself. In any case, the cryptoasset industry is still very young, still has a long way to go and is still far from reaching its full potential," concludes Zala.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN