Chart factors to crypto ‘peaking out’ in early 2021

Bitcoin could take a breather in the new year.

The red-hot cryptocurrency continued its longest monthly winning streak in more than a year on Monday after hitting a new all-time value above the $ 28,000 mark on Sunday.

Based on the charts, that run could be suspended in 2021, Newton Advisors founder and president Mark Newton told CNBC’s “Trading Nation” on Monday.

“It’s still pretty bullish over the medium term as it has just hit new all-time highs,” Newton said. “I think we still have a long way to go. In the short term, my cycle composite shows that we peaked in early January.”

Bitcoin’s weekly chart and relative strength index reflect growing interest in the world’s largest digital currency, mainly from institutional investors, Newton said.

Google searches for Bitcoin are up around 750% year-over-year, but are still “nowhere near” at their 2017 high, the chart analyst said.

“”[With] SPACs right now can make you 10, 15, 20% a day, “he said.” I just don’t think investors have an appetite for crypto, while institutions are certainly going in that direction very much. “

Newton’s other chart, which uses three different Bitcoin cycles, the most important of which is 273 days, to track changes in the cryptocurrency’s path, suggests an imminent turnaround towards Bitcoin.

“In all the years that we’ve had a great fourth quarter, in late December, early January we reversed the trend and actually went down,” he said. “Well, I think there will be an opportunity [for] Investors should be able to buy mainly dips in crypto and bitcoin. “

Newton, who is long Bitcoin, Ethereum, Litecoin, and several other digital currencies, said he would try to sell his positions “in the next week or two”.

“I think there will be an opportunity to buy burglaries in the first quarter of next year,” he said.

Boris Schlossberg, chief executive of FX strategy at BK Asset Management, said institutional interest in Bitcoin was “a good sign for the asset”.

“Can it go as high as $ 50,000? Absolutely,” he said in the same Trading Nation interview, warning, “If you want to trade or invest this asset, you must have the mentality that it is a huge amount of becomes.” Volatility. “

“As for the final rating, it’s impossible to tell, but an interesting measure: if you look at the tulip mania, at the height of the tulip mania, a tulip was basically about a house worth,” said Schlossberg. “If you’re using this type of rating, there’s still a long way to go because the final final rating could be $ 150,000, $ 200,000 before the entire move exhausts itself. So, as many people have said, there is always still quite a rating. ” lots of potential but there will certainly be massive volatility when we get there. “

Disclosure: Newton is made up of long bitcoin, ethereum, litecoin and several other cryptocurrencies, as well as closed trusts for bitcoin cash and ethereum.

Disclaimer of liability

Comments are closed.