According to the latest news, the world’s most enormous cryptocurrency, Bitcoin, could hit a new 2020 high if bulls hold the value above the key multi-year resistance at $11,500.
Moreover, the U.S. Securities and Exchange Commission has shot down several Bitcoin (BTC) exchange-traded fund applications during the past three years. This action destroyed many investors’ optimism, who thought Bitcoin’s price would surge higher if an EFT were approved.
It’s true that ventures no longer pin Bitcoin’s future on the existence of an ETF. However, regulators could eventually adjust their anti-crypto position in the long-run.
Hester Pierce, SEC Commissioner, made a statement, according to which the regulator will have to become accommodative to innovation as many people from the crypto space as well as traditional financial institutions seek their guidance.
According to Bloomberg, Bitcoin ETF could reach its peak if Democratic presidential nominee Joe Biden will become the next U.S. President. Besides, Bloomberg considers that a change in guard may bring regulatory clarity that could attract digital assets investments.
Moreover, suppose current U.S. President, Donald Trump will stay president. In that case, Bloomberg awaits BTC to extend its uptrend through his second term as the digital asset will be buoyed by the quantitative easing, growing debt-to-GDP, and Bitcoin hash rate.
The pair will increase to $80,000 by 2024
Another essential thing to mention is that even if BTC rises at half the speed of its 1,400% gain from 2016 to 2020, it will increase to $80,000 by 2024.
On October 8, a breakout of the symmetrical triangle interested buyers pushed the overhead resistance price to $11,178.
Significantly, investors have not yet given up entirely. On September 10, they sold the rally to $11,482.44.
The bulls managed the dip to purchase and did not let the price to break under $11,178. It implies that the sentiment has changed from sell on rallies to buy on dips.
Moreover, the moving averages on a bullish crossover and the relative strength index of more than 64 show that the advantage is with the bulls.
If the buyers can shift the price up the overhead resistance at $11,500, the next stop for the Bitcoin could be $12,000 and then $12,460.
If Bitcoin turns down from the current levels and breaks under the 20-day exponential moving average, which equals $10,853, the bullish view will be nullified. Such a move will imply that the recent breakout was a bull trap.
On the contrary, if the value turns down from the overhead resistance, it could consolidate in the range of $11,468.98–$11,178. A break under $11,178 will be a sign of short-term instability.