Here’s the next upside target for Bitcoin (BTC) buyers

Bitcoin (BTC) price rose to new all-time highs on Sunday, before rotating lower on profit-taking. Buyers are now taking a step back before a continuation of the uptrend can take place. 

Fundamental analysis: Strong institutional demand

Henri Arslanian, a global crypto leader at PwC, believes that large institutional investors have entered the cryptocurrency market, which is reflected in the recent uptrend.  

Many analysts continue to argue that Bitcoin has joined gold as a hedge against inflation. Massive stimulus packages unveiled across the globe are likely to increase inflation in the coming years. 

“When you look at this bitcoin rally that we have been seeing in the last couple of weeks and months, really, there’s two big elements driving it. One is the continuous entry of institutional players,” Arslanian said.

“But also there’s a lot of regulated players as well. This was not the case a couple of years ago,” he said.

Accordingly, the higher number of retail crypto investors is also helping Bitcoin to move higher. Crypto exchanges around the world are reporting increased numbers of new retail investors. Overall, it’s much easier to buy crypto today than a few years ago. 

“With these two big elements driving it, there’s a lot of momentum going on in the space. There’s a lot of optimism in the crypto markets as well,” Arslanian said, before adding that the current BTC bull run looks similar to the one that took place in 2017.

Technical analysis: A pause in the uptrend

Bitcoin price broke above the $30,000 mark for the first time ever on Saturday before another leg higher took the world’s largest digital asset to $34,800 on Sunday. This means BTC has doubled in value since the beginning of December.

Bitcoin monthly chart (TradingView)

In the meantime, the price action has corrected about 10% to trade around the $31,500 mark today. A correction is natural given the scale of the recent bull run and it can be seen as a step back before Bitcoin buyers can continue their push higher. 

The only technical resistance that is possible to be identified is $46,500 – 261.8% extension of the correction from all-time highs recorded in 2017.

Summary

PwC’s Henri Arslanian also believes that the latest push in the BTC price has been driven by increased adoption among large institutional investors. Bitcoin price printed a fresh all-time high of $34,800 on Sunday. 

The post Here’s the next upside target for Bitcoin (BTC) buyers appeared first on Invezz.