Is Bitcoin Headed For $85,000?

The price of the world's first cryptocurrency Bitcoin BTC/USD has jumped by over 90% since its July low of about $29,000.

What Happened: With Bitcoin trading around $57,000 earlier Tuesday, it was only $7,700 away from its April all-time high, according to a Bloomberg report

A rally in Bitcoin — which resulted in other digital assets following suit — also "contrasts with the travails of assets such as stocks, bonds and gold amid a bout of jitters in global markets."

See Also: IS BITCOIN A GOOD INVESTMENT? 

According to Vijay Ayyar — head of Asia Pacific with crypto exchange Luno — chart patterns suggest that new records for Bitcoin's price be made at levels of  $80,000 to $85,000. Such a scenario is only likely to occur if Bitcoin holds the $50,000 price level in the short term.

Bloomberg reports Bitcoin's rally has painted an inverted head and shoulders chart pattern with an objective of about $79,000 — a probable new all-time high.

Another bullish sign is that the Ichimoku cloud indicator shows that short-term momentum has crossed above the longer-term trend for both Bitcoin and Ethereum ETH/USD on the weekly candle chart. Both the coins saw their prices significantly increase in the year following such crossovers over the past five years.

Price Action: According to CoinMarketCap data, Bitcoin is trading at $56,214 midday Tuesday for a drop of 2.16% over 24 hours. 

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CryptocurrencyLong IdeasMarketsMediaTrading Ideas
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!