Bitcoin is on track to set a new all-time high before the year is over, according to eToro analysts Simon Peters and David Derhy.
The bullish forecasts come at a time when Bitcoin is trading at $13,400 having taken out a few key levels of resistance over the past week.
Peters admits that while there is a chance that Bitcoin will slump back to the $12,000 level, investors “should not be worried” as consolidation in this area would add weight to the bullish narrative.
Evaluating why Bitcoin has rallied recently, Peters added: “Notably PayPal announcing it would enable its users to pay for goods and services in cryptoassets.
“This positive development was compounded by a discussion earlier in the week on the IMF’s Cross Border Payments Panel, in which Federal Reserve chairman Jerome Powell reiterated that a US CBDC continues to be on the radar, whilst also opening the door for private firms to get involved in the endeavour.”
Bitcoin’s recent run has been remarkable but that doesn’t mean it lacks substance, with fundamental factors falling into place ahead of potentially the first bull market since 2017.
Derhy continued: “The current run could simply push through all the way to $14,000. If that is the case, then the next level from a technical and fundamental perspective would be $20,000.
“With the US election coming up next month, further economic stimulus from the government is going to happen even if the size of that stimulus is still up for discussion. I am of the view that we won’t see a drop back down below $12,000 for a while yet.
“With the reduced volatility we are seeing, institutional investors are more and more interested in buying bitcoin. Combine this with the host of listed companies also looking to add bitcoin to their balance sheets, and the springboard for bitcoin prices continues to look very positive.”
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.