Bitcoin to Hit $60-64K Soon, Asserts Analyst Despite Price Dip

“As long as we’re above 42,000, this should be the next leg of the uptrend,” he wrote. “Lose that and we can view it as a deviation where pain occurs. The place to see IMO. Hold up and we’ll see 60-64k soon. “

The statement came after Bitcoin’s recent intraday correction before the opening bell in New York on Wednesday. The benchmark cryptocurrency was down more than 1.5 percent, extending its decline from the previous session’s record high of $ 48,200. On Wednesday, Bitcoin was its lowest at $ 44,600.

Bitcoin fell more than 1.5 percent on Wednesday due to profit-taking, the chart shared by Pentoshi shows. Source: BTCUSD on TradingView.comBitcoin fell more than 1.5 percent on Wednesday due to profit-taking, the chart shared by Pentoshi shows. Source: BTCUSD on TradingView.com

Different prospects

The downward correction appeared to be due to profit-taking sentiment in the retail markets. Bitcoin rose as much as 20 percent on Monday after Tesla announced in its report on filing of securities that it had purchased $ 1.5 billion worth of cryptocurrency in January.

While many analysts agreed that Tesla’s Bitcoin offering would encourage more Wall Street companies to make copycat investments, some mainstream strategists thought differently. According to analysts at JPMorgan Chase and Treasury Partners, Bitcoin remains too volatile, even for the US dollar bears, to keep corporate interest in the cryptocurrency as low as possible.

“Companies invest their money in very high quality short-term fixed income securities and are willing to accept a relatively low return,” Jerry Klein, managing director of Treasury Partners, said in a statement to the FT. “I don’t think it makes sense to invest company money in a risky asset like Bitcoin that could see significant declines.”

Bitcoin to the moon

However, long-term optimistic hopes remained high as traders further evaluated US President Joe Biden’s $ 1.9 trillion stimulus proposal. Many of them expect the US dollar to continue lower after Congress approves expansive aid to coronavirus. This in turn would lead more mainstream companies sitting on billions of dollars in cash reserves to reallocate some bitcoin.

“As companies assume Bitcoin As a Treasury Reserve asset on their balance sheets, they replace a distressed asset with the best performing asset and choose volatile appreciation over steady depreciation, ”said Michael Saylor, CEO of MicroStrategy, a publicly traded company with more than 72,000 BTC in its reserves .

“This Bitcoin The strategy will benefit all shareholders in the long term, ”he added.

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