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Bitcoin Rally Likely To Peak Out In Coming Weeks, Says Technical Analyst

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Bitcoin Rally Likely To Peak Out In Coming Weeks, Says Technical Analyst

Bitcoin (BTC) rally seems headed for a breather in early January, as per Newton Advisors President Mark Newton.

What Happened: The apex cryptocurrency still looks “bullish on an intermediate-term basis,” given it just broke out to all-time new highs, Newton told CNBC on the basis of chart analysis.

"Near term, my cycle composite shows us peaking out in early January,” the analyst said. 

Basing his analysis on another chart, which uses three disparate Bitcoin cycles, Newton said, “All those years where we had a stellar Q4 we reversed course in trend back in late December, early January, and actually went lower.”

“I think there will be some opportunity to buy dips into Q1 of next year,” Newton said.

Why It Matters: Newton is long on various cryptocurrencies and revealed that he was looking to sell out of his positions in the next “one or two weeks.”

Comparing investors with institutions, Newton observed that with “SPACs right now, you can make money at 10, 15, 20% 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.”

See Also: MicroStrategy Now Holds 70,470 Bitcoin After Spending $1.1B in 2020

Cryptocurrency markets are on fire with BTC soaring nearly 36.7% since the beginning of the month and 273.22% on a year-to-date basis. The cryptocurrency reached its all-time high of $28,288.84 on Dec. 27.

Ethereum (ETH) has risen 16.78% since the beginning of December and 451.79% on a YTD basis.

Grayscale Bitcoin Trust (OTC: GBTC) and Grayscale Ethereum Trust (OTC: ETHE) closed 11.33% and 4.32% higher at $30.45 and $16.90 on Monday, respectively.

At press-time Bitcoin traded 1.26% lower at $26,845.73 and Ethereum traded 1.06% higher at $715.97.

Latest Ratings for GBTC

DateFirmActionFromTo
Feb 2018BuckinghamInitiates Coverage OnSell
Jul 2015WedbushInitiates Coverage onOutperform

View More Analyst Ratings for GBTC
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