2020-11-14 16:29 |
With Bitcoin turning bullish, the mainstream institutions are also taking a special interest in the leading digital asset. The latest is Citibank, whose bitcoin technical analysis sees lofty price targets at over $300k per BTC by the end of 2021.
Thomas Fitzpatrick, Global head of CitiFXTechnicals product, the author of the report, traces the historical price performance of Bitcoin, which reflects that timeframes for the rally are getting longer, which puts this rally to peak in December 2021 at $318k.
“Improbable though that seems it would only be a low to high rally of 102 times (the weakest rally so far in percentage terms),” with arguments in favor of Bitcoin at their most persuasive ever, he wrote.
The report notes how Bitcoin is all about “unthinkable rallies followed by painful corrections” but a type of pattern that sustains a long term trend.
As such though it’s to be seen if such lofty levels will be hit, “the price action we are looking at clearly suggest the potential for a major move higher nonetheless in the next 12-24 months,” reads the report whose snippets were first shared by trader and economist Alex Kruger.
Although “this kind of technical analysis is of little value,” Kruger noted, “what matters here is Citi's clients being exposed to the bitcoin moon.”
Citibank compared the digital asset’s first rally that took it to the mainstream with gold, which similarly “was allowed to float in the early 1970s after 50 years of trading in a $20-035 range.”
And that was a “structural change in the modern-day monetary regime” ushering in a world of fiscal indiscipline, deficits, and inflation. As for Bitcoin, its move happened in the aftermath of the Great Financial crisis.
In 2020, with all the MMT, gold is likely to gain from this, but the author of the report noted that gold has restrictions such as storage, non-portable, and could possibly be even called “yesterday's news” in terms of a financial hedge.
“Bitcoin is the new gold,” reads the report.
The leading digital asset has a limited supply, is easy to move across borders, and offers opaque ownership. But the author also says that Bitcoin may be subject to more regulatory constraints going forward.
The report further mentions CBDC, which though a much more effective mechanism for distributing stimulus, “makes capital confiscation easier.” In both the scenarios, Bitcoin will give us the digital equivalent (Bitcoin versus Fiat digital) of what we saw in the 20th century when the financial regime changed (Gold versus FIAT paper).
Bitcoin (BTC) Live Price 1 BTC/USD =15,802.6958 change ~ -1.27Coin Market Cap
292.96 Billion24 Hour Volume
26.95 Billion24 Hour Change
-1.27 var single_widget_subscription = single_widget_subscription || []; single_widget_subscription.push("5~CCCAGG~BTC~USD");The post Bitcoin’s Moon Target Set at 8,000 in December 2021 by Citibank Report first appeared on BitcoinExchangeGuide.
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