Bitcoin experienced a strong rally last week – even after news that OKEx had blocked withdrawals.
At the time of writing, the coin is being traded for $13,050, just below the weekly highs.
Analysts expect Bitcoin to continue to move higher in the coming days.
Bitcoin is expected to move further up
Bitcoin experienced a strong upswing last week, moving from the $11,500 range to the $13,000 range. The coin is currently traded for $13,150, slightly below the weekly and annual highs.
Analysts believe that Bitcoin will continue its rise in the coming days.
A crypto-asset analyst split the chart below on October 24th. It shows that BTC’s recent price action is very similar to that of May this year and the price action in early August.
This fractal comparison suggests that Bitcoin is likely to see a temporary price rise towards $14,000 in the coming days and then return to pre-rally levels.
The analyst behind this observation is the one who predicted that Bitcoin would fall to $9,755 by the end of August. The crypto currency followed almost perfectly the path predicted by the analyst, but the correction stopped in the $9,800 range.
Chart of BTC’s price action in recent weeks with the analysis of the crypto trader Coiner-Yadox (@yodaskk on Twitter). Source: BTCUSD from TradingView.com
According to analysts, Bitcoin’s fundamentals emphasise that the coin will continue to move higher in the coming days and weeks.
On the one hand, progress is being made on the front of US tax incentives. A new stimulus package is likely to drive the price of the US dollar down, pushing up the hedging transactions for Bitcoin and other currencies.
Raoul Pal, CEO of Real Vision, comments on the macroeconomic aspect of monetary and fiscal policy as follows:
„Most people don’t understand the latter, but simply put, Powell has shown that there is a ZERO tolerance to deflation, so they will do everything they can to stop it, and that is good for the two hardest assets – gold and Bitcoin. Powell WANTS inflation. I don’t think he will get real „demand push inflation“, but he will get fiat devaluation, in conjunction with the other central banks who are all on the same mission“.
With PayPal now supporting crypto assets, analysts are confident that there will be an inflow of investment in Bitcoin over time. The crypto currency is also expected to benefit from the news that the companies‘ financial authorities are buying Bitcoin.