Despite being bulling on bitcoin for the long-term, the founder and president of Newton Advisors, Mark Newton, noted that BTC could head for a correction in early 2021. He plans to dispose of his cryptocurrency assets in the next few weeks, as there could be “buy the dip” opportunities soon.The Role Of Institutions In The Current BTC MarketThe primary cryptocurrency has been on a tear in late 2020. It went from dabbling with the ,000 price tag to nearly tripling its value and exceeding ,000 for a new all-time high.Newton, who’s a trader with 20 years of experience and Greywolf’s former Chief Technical Analyst, pointed out in a recent CNBC interview that he is still bullish on BTC for an intermediate-term basis “given that it just broke out to new all-time highs.”He referred to the
Topics:
Jordan Lyanchev considers the following as important: AA News, Bitcoin (BTC) Price, Bitcoin Long-Term Prediction, BTCEUR, BTCGBP, btcusd, btcusdt
This could be interesting, too:
Chayanika Deka writes Web3 Security Firms Confirm North Korea’s Role in Radiant Capital Hack
Jordan Lyanchev writes Over .4 Billion in Liquidations as Bitcoin (BTC) Dumps by K in Hours
Wayne Jones writes Fox News Journalist Exposes Fake BlackRock Token Scam
Chayanika Deka writes SushiSwap to Launch New Products in 2025, Including Kubo, Blade, and Susa
Despite being bulling on bitcoin for the long-term, the founder and president of Newton Advisors, Mark Newton, noted that BTC could head for a correction in early 2021. He plans to dispose of his cryptocurrency assets in the next few weeks, as there could be “buy the dip” opportunities soon.
The Role Of Institutions In The Current BTC Market
The primary cryptocurrency has been on a tear in late 2020. It went from dabbling with the $10,000 price tag to nearly tripling its value and exceeding $28,000 for a new all-time high.
Newton, who’s a trader with 20 years of experience and Greywolf’s former Chief Technical Analyst, pointed out in a recent CNBC interview that he is still bullish on BTC for an intermediate-term basis “given that it just broke out to new all-time highs.”
He referred to the relative strength index to assert that the demand from institutional investors has fueled the Q4 2020 rally.
However, Newton predicted that the cryptocurrency could reach its near-term peak in early January. He touched upon the trailing interest from retail investors, saying that they don’t have “the appetite for crypto while the institutions are certainly very much heading in that direction.”
Bitcoin’s Run To Pause In Early 2021?
Furthermore, Newton relied on historical data of BTC cycles to determine that the cryptocurrency’s run could come to a halt soon.
“All those years where we had a stellar Q4, we reversed course in trend back in late December, early January, and actually went lower. So, I think there will be some opportunity for investors to be able to buy the dip in crypto and bitcoin particularly.”
Consequently, Newton noted that he would look to sell his cryptocurrency positions in the next one or two weeks. Apart from BTC, his digital asset portfolio consists of Ethereum, Litecoin, and “several other” coins.
Buy the dip is a popular strategy within the cryptocurrency field that enables investors to accumulate at more attractive prices. Most digital assets are known for their high volatility levels. Even during a significant bull run, which BTC has undergone lately, there’s a retracement that allows an entry at a lower price.
Bitcoin to $50K And Beyond?
The managing director of FX Strategy at BK Asset Management, Boris Schlossberg, outlined the role of institutional investors in BTC’s run as well. He also warned new traders and investors about the “huge amount of volatility” but said that the cryptocurrency could “absolutely” go up to $50,000.
Even if bitcoin is indeed in a bubble similar to the tulip one, its price could still skyrocket.
During the tulip mania, “one tulip was worth basically about one house. If you do use that kind of valuation, then it still has a long way to go because its ultimately terminal valuation could be $150,000, $200,000 before the whole move kind of exhausts itself.”
Featured Image Courtesy of CNBC