Peter Brandt, a respected veteran trader, recently emphasized that strong demand from institutions is the main catalyst for Bitcoin’s strong performance.
BTC’s strong technical structure, especially the weekly chart, and strong fundamentals are boosting market sentiment. In his tweet, Brandt posted the diagram above and said:
“Bitcoin – if the current gain continues through the end of October – is poised for the second largest monthly outage ever. USD-denominated institutions are increasingly sharing bitcoin ownership. Institutions value their assets on a monthly basis. ”
In addition to increasing trading volume and increasing institutional appetite, investors are looking to the log chart to predict a broader rally.
Raoul Pal focuses on Bitcoin rankings
The magazine pricing table is the metric most commonly used by most technical analysts. A logarithmic graph simply means a graph that represents the percentage of total changes in equal distances on a scale.
Raul Pal, founder and CEO of Real Vision Group, says the monthly Bitcoin registration scheme is very optimistic. He wrote:
“It’s kind of bitcoin. The monthly log plot with regression lines is really a must see. One of the best and strongest graphic patterns I’ve ever seen. ”
The technical reason for optimism about the monthly chart is mainly that it has completely broken through. Over the past four years, $ 13,000 has been a significant level of resistance.
As such, on higher timeframes such as weekly and monthly charts, BTC always closes below $ 11,000 except in 2020.
The pure technical disruption of bitcoin on the monthly timeframe is prompting traders and investors like Brandt and PAL to make strong bullish calls for BTC’s price movement. As Pal said, “If these were songs of history, 2021 would be a big year.”
Fourth quarter of 2020 may end on a positive note
Aside from a few bullish technical and fundamental catalysts, the timing of the current rally also supports a major bullish cycle for Bitcoin.
According to Skew, Bitcoin hasn’t had three consecutive positive quarters since 2017. During this year, BTC hit its full high of $ 20,000 after its second block bonus was cut in half in 2016.
Bitcoin is likely to post huge positive gains in the fourth quarter if it stays above $ 12,000. In this case, it could lead to the same bullish cycle pattern as in 2017. Next year will also have the same half-cycle that Bitcoin had in 2017, confirming the story of a new bull cycle.