By Bitcoin could be headed for a breather in the new year. The redhot cryptocurrency continued its longest monthly win streak in more than a year on Monday after grazing a new alltime above the 28,000 mark on Sunday. Based on the charts, that run might be put on pause come 2021, Mark Newton, founder and president of Newton Advisors, told CNBCs Trading Nation on Monday. It is still quite bullish on an intermediateterm basis given that it just broke out to new alltime highs, Newton said. I think we have a ways to go. Near term, my cycle composite shows us peaking out in early January.
Bitcoins weekly chart and relative strength index reflect rising interest in the worlds 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 dont think that investors have quite the appetite for crypto while the institutions are certainly very much heading in that direction.
Newtons other chart which uses three different bitcoin cycles, the main one being 273 days, to track changes in the cryptocurrencys path hints at an upcoming turn in bitcoins 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…
