Is Bitcoin Headed For $85,000?

The price of the world's first cryptocurrency Bitcoin (CRYPTO: BTC) has jumped by over 90% since its July low of about $29,000.

What Happened: With Bitcoin trading around $57,000 earlier Tuesday, it was only $7,700 away from its April all-time high, according to a Bloomberg report

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A rally in Bitcoin — which resulted in other digital assets following suit — also "contrasts with the travails of assets such as stocks, bonds and gold amid a bout of jitters in global markets."

See Also: IS BITCOIN A GOOD INVESTMENT? 

According to Vijay Ayyar — head of Asia Pacific with crypto exchange Luno — chart patterns suggest that new records for Bitcoin's price be made at levels of  $80,000 to $85,000. Such a scenario is only likely to occur if Bitcoin holds the $50,000 price level in the short term.

Bloomberg reports Bitcoin's rally has painted an inverted head and shoulders chart pattern with an objective of about $79,000 — a probable new all-time high.

Another bullish sign is that the Ichimoku cloud indicator shows that short-term momentum has crossed above the longer-term trend for both Bitcoin and Ethereum (CRYPTO: ETH) on the weekly candle chart. Both the coins saw their prices significantly increase in the year following such crossovers over the past five years.

Price Action: According to CoinMarketCap data, Bitcoin is trading at $56,214 midday Tuesday for a drop of 2.16% over 24 hours. 

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