$20,000 Won’t Pose Any Resistance for Bitcoin Price, Says Max Keiser
According to Heisenberg Capital founder and Keiser Report host Max Keiser, the price of Bitcoin (BTC) would soon rally to $28,000. He believes the all-time high of BTC at $20,000 likely won’t act as resistance.
Keiser, who is an early investor in unicorn Kraken and $100-million-worth Bitstamp, said:
“The $20,000 level for #Bitcoin won’t pose any resistance. We won’t see any resistance till $28,000. A brief pullback then the assault on $100,000 begins with renewed vigor.”
In the past 12 days, the price of Bitcoin has increased from $9,200 to $12,000, marking the highest price in over a year. The cryptocurrency market is benefiting from the strong momentum of Bitcoin and Ethereum’s Ether.
Keiser reaffirms his $100,000 Bitcoin prediction
Throughout the Bitcoin rally in the past month, Keiser has continuously reaffirmed his position on the medium-term trend of BTC. He expects BTC to eventually surpass $28,000, and shoot for a new all-time high at six figures.
In late July, when the price of Bitcoin first broke out of $11,000, Keiser said a six-figure BTC is likely. Since then, BTC has confirmed $10,400 as a key support level, maintaining its momentum. He said:
“$28,000 is in play before we see a pullback – and then we’re heading to 6-figures.”
But on Aug. 2, as Cointelegraph reported, Bitcoin saw its first major pullback since mid-June. The price of BTC fell abruptly from $12,000 to $10,500 within 15 minutes, causing $1 billion to get liquidated across the entire market.
The price of Bitcoin sees a sharp drop in a short period. Source: TradingView.com
Keiser and other high-profile appear to be unfazed by the move and generally consider the price action as a shakeout. Both over-leveraged and low-leverage long contracts were flushed out in less than an hour, causing the market to cool off.
Cryptocurrency trader Scott Melker said there were many bearish divergences prior to the drop occurred. After such a strong rally in a short period, the market seemingly needed to stabilize from an overheated rally. He said:
“A $1700 BTC hourly candle (mostly in a few minutes) on extremely high volume, including a similar sell-off on ETH in the middle of the night? Cool. There were bear divs everywhere, as I mentioned.”
Others see a differing trend for BTC, at least in the short-term
In the short term, some traders expect major cryptocurrencies, including Bitcoin and Ether, to demonstrate low volatility. Subsequent to a large price movement, BTC tends to establish a range and see a sideways action for several weeks.
Michael van de Poppe, a trader at the Amsterdam Stock Exchange, said altcoins could benefit from a potential BTC sideways action. He said:
“The most likely case is that we’ll have volatility on $BTC & $ETH as they determine their range. But over time (one week-two weeks) this will start to drop. What do you have to do? Yes, buy dips on altcoins. While everyone is focused on $BTC, your focus should be on alts.”
While the short-term predictions of traders vary, many investors are seemingly positive about the medium-term trend heading into 2021. Various macro factors, such as a declining U.S. dollar and rising liquidity, could further boost BTC’s current momentum.
PlanB, the well-known creator of the stock-to-flow (S2F) Bitcoin price model, also reaffirmed that BTC is on track to reach $100,000. He said following its explosive rally, BTC is “perfectly on track” to reach six figures.
