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Bitcoin Readies for a Test of the All-Time Highs

bitcoin price BTC

Bitcoin’s rally has continued with the coin now trading above $18,000. The all-time highs near $20,000 are very close and a move to test it could be imminent.

The Chicago Mercantile Exchange has reported a record high open interest in bitcoin futures of $976 million. The world’s leading cryptocurrency is seeing a steady rise in institutional capital into the coin and its derivatives. A weak U.S. dollar is helping the price of BTC, but the coin has done well to dislocate from gold and other safe-haven trades, which is a sign that investors are positioning for a change in Bitcoin demand.

Two hedge fund veterans have recently shared their opposing views on the path of Bitcoin, with Stanley Druckenmiller saying that his small Bitcoin holding would likely outperform his larger gold holdings in price gain and returns. Druckenmiller made his name alongside George Soros in the 1990s. Alternatively, Ray Dalio, who runs the world’s largest hedge fund called Bridgewater Capital suggests that governments will move to outlaw Bitcoin if it threatens their control of the monetary supply.

That would be further out in time as the U.S. and Europe are not close to a digital currency, while China’s digital Yuan is still in the testing phase. Bitcoin still has a chance to get through the all-time highs and set new levels. In doing so, it would likely be accompanied by a blitz of media attention that could attract new retail investment flows. The current flood of institutional and “smart money” could be an indicator that this is coming.

Bitcoin Technical Outlook

Bitcoin paused after a test of the $16,000 level and found support after a move higher so this has created a base and would be the first target for a downside move. The next path is a move to that support or a test of the all-time highs near $20,000. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching

Bitcoin Daily Chart