On Tuesday, Bitcoin surged from below $27,000 to briefly touch mid-$27,000s, as a sudden influx of fresh buying overwhelmed sellers. The rally saw over $32 million in short positions of Bitcoin get ‘liquidated’ on various exchanges.
Now, the question is – what’s next for BTC?
While no one can accurately predict what will happen in the cryptocurrency markets, the indicators point to more gains for Bitcoin in the short-term.
The increasing number of institutional investors entering the market is a positive sign for Bitcoin in the coming months. Many investors, including fund managers and high-net worth individuals, are showing more confidence in the asset as Bitcoin gains more mainstream adoption.
In addition, technical indicators, like MACD and RSI, remain in bullish territory on the 1-day and 4-hour timeframes. This shows that the upward momentum is strong, and implies that Bitcoin will likely break through its current $27,000 resistance.
Given Bitcoin’s current bull cycle, it is reasonable to expect Bitcoin to hit new all-time highs before the end of 2021. The rally could take Bitcoin to $50,000 or even $60,000 – if enough institutional money comes into the market.
Long story short, it looks like the bears have been put to bed – at least for the short term. Bitcoin is likely headed higher in the weeks and months ahead.