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Peter Brandt, a well-regarded veteran trader, recently stressed the high demand from institutions as a key catalyst for Bitcoin’s strong performance.
The strong technical structure of BTC, especially the weekly chart, and the strengthening of the fundamentals are supporting the market sentiment. In a tweet, Brandt posted the chart above and She said:
“Bitcoin, IF the current gains last through the end of October, is ready for the second highest monthly close ever. $ BTC institutions are increasingly involved in Bitcoin ownership. Institutions mark the value of their assets on a monthly basis “.
In addition to increasing trading volume and growing institutional appetite, investors refer to the logarithmic chart to predict a broader rally.
Raoul Pal focuses on the Bitcoin log chart
The logistics price chart is the scale most used by most technical analysts. A logarithmic chart simply means a chart that represents common percentage changes with equal spacing in a scale.
Raoul Pal, founder and CEO of Real Vision Group, says Bitcoin’s monthly ledger chart is very optimistic. He he wrote:
“It’s a bitcoin kind of day. The monthly log chart with the regression lines is really something to see. One of the most beautiful and powerful chart patterns I’ve ever seen.”
The technical reason behind the optimism towards the monthly register chart is mainly its sharp breakout. Over the past four years, $ 13,000 has represented a strong resistance level.
As a result, in high time frame charts, such as the weekly and monthly chart, BTC has always closed below $ 11,000, except for 2020.
Bitcoin’s sharp technical breakout over the monthly time frame is leading traders and investors like Brandt and Pal to make strong bullish demands on BTC’s price action. As Pal said, “if history rhymes, 2021 will be a BIG year.”
The fourth quarter of 2020 could end on a positive note
In addition to the numerous technical catalysts and bullish fundamentals, the timing of the current rally is also in favor of a major Bitcoin bullish cycle.
Second data from Skew, Bitcoin hasn’t had three consecutive positive quarters since 2017. During that year, BTC hit its all-time high at $ 20,000 after halving the second block reward in 2016.
Bitcoin could be on track to record a hugely positive gain in the fourth quarter if it remains above $ 12,000. If so, that could lead to the same bullish cycle pattern as in 2017. Next year would also feature the same post-halving cycle that BTC saw in 2017, which further strengthens the narrative of a new bullish cycle.
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