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Summary (IA Generated)
The price of Bitcoin (bitcoin-price-breakout-possible-despite-okex-scandal/”>BTC) has been consolidating within a tight range for several months.
If the top cryptocurrency successfully breaks out, Bitazu Capital founding partner Mohit Sorout says a record-high would be imminent.
When Bitcoin stays stable for a long time in a tight price range, a major price movement typically occurs.
But if it happens, Sorout says it would take three months for bitcoin-price-breakout-possible-despite-okex-scandal/”>BTC to hit $20,000.
Why three months for a Bitcoin all-time high following a breakout?.
Based on previous price cycles, Bitcoin tends to move fast after existing a long-range.
From May 1 to July 20, Bitcoin ranged between $8,800 to $9,800, stabilizing at around $9,100.
After two months of consolidation, it took BTC 12 days to record a 32% rally to $12,123 on Binance.
Considering the tendency of Bitcoin to see large volatility spikes after prolonged consolidation periods, Sorout said:.
If $BTC was to break out today, it would most probably reach its previous ATH of $20k within 3 months.
When asked about the reasoning behind the three-month span, Sorout said it is based on an observation of volatility.
According to Sorout, a price increase towards $20,000 could happen even earlier than three months.
A strong narrative around a Bitcoin bull cycle heading into 2021 remains the recent upsurge of institutional demand.
17, Grayscale CEO Barry Silbert said the firm hit record-high assets under management at $6.
If so, that could mean that many institutional investors are accumulating BTC without the intent to sell in the near future.
The price of Bitcoin has been relatively stagnant throughout October despite the positive news around institutional inflows.
But stock-to-flow (S2F) creator PlanB said asymmetrical returns are likely to occur over time.
“Why does #bitcoin price not go up with all this institutional buying?.