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Bitcoin’s weekly chart and relative strength index reflect rising interest in the world’s largest digital currency, mostly from institutional investors, Newton said. Google searches for bitcoin are up some 750% year over year, but still “nowhere near” their highs from 2017, the chart analyst said. ?[With] SPACs right now, you can make money at 10, 15, 20% a day,” he said. “I just don’t think that investors have quite the appetite for crypto while the institutions are certainly very much heading in that direction.”
Newton’s other chart — which uses three different bitcoin cycles, the main one being 273 days, to track changes in the cryptocurrency’s path — hints at an upcoming turn in bitcoin’s direction. “All those years where we had a stellar Q4 we reversed course in trend back in late December, early January, and actually went lower,” he said. “So, I think there will be some opportunity [for] investors to be able to buy dips in crypto and bitcoin particularly.” Newton, who is long bitcoin, ethereum, litecoin and several other digital currencies, said he would look to sell out of his positions “in the next one or two weeks.” “I think there will be some opportunity to buy dips into Q1 of next year,” he said.
Boris Schlossberg, managing director of FX strategy at BK Asset Management, said the institutional interest in bitcoin “bodes well for the asset.” “Can it go to $50,000? Absolutely,” he said in the same “Trading Nation” interview, cautioning that “if you are looking to trade or invest this asset, you have to have the mentality that it’s going to have a huge amount of volatility.”
Source: FXPro
