Bitcoin has seen a strong rally over the past week – even after news that OKEx has blocked withdrawals.
The Crypto Trader is trading for $ 13,050 at the time of writing, which is just below the weekly highs.
Analysts assume that Bitcoin will continue to move higher in the coming days.
Bitcoin is expected to continue to move higher
Bitcoin has seen a strong surge in the past week, moving from the $ 11,500 area to the $ 13,000 area. The coin is currently being traded for $ 13,150, which is slightly below the weekly and annual highs.
Analysts believe Bitcoin will continue its rise in the coming days.
A crypto asset analyst shared the chart below on October 24th. It shows that BTC’s most recent price action looks very similar to that in May this year and the price action in early August.
This fractal comparison suggests that Bitcoin is likely to experience a temporary surge in price towards $ 14,000 in the coming days and then fall back to pre-rally levels.
The analyst behind this observation is the one who predicted Bitcoin would fall to $ 9,755 by the end of August. The cryptocurrency followed the path the analyst predicted almost perfectly, but the correction stopped in the $ 9,800 area.
According to analysts, Bitcoin’s fundamentals emphasize that the coin will continue to move higher in the coming days and weeks
For one, advances are being made on the front line of US tax incentives. A new stimulus package is likely to drive the price of the US dollar down and thus the hedging transactions for Bitcoin and other currencies up.
Raoul Pal, CEO of Real Vision, comments on the macroeconomic aspect of monetary and financial policy as follows:
„Most people don’t understand the latter, but to put it simply, Powell has shown that there is ZERO tolerance to deflation, so they will do whatever they can to stop it, and that’s good for the two toughest investments – gold and Bitcoin. Powell WANTS inflation. I don’t think he will get any real demand push inflation, but he will get a fiat devaluation, in conjunction with the other central banks that are all on the same mission. “
With PayPal now also supporting crypto assets, analysts are confident that there will be an influx of investments in Bitcoin over time. The cryptocurrency is also expected to benefit from news that corporate treasuries are buying bitcoin.