A popular Bitcoin analyst and trader pointed out that Bitcoin has historically headed towards massive price surges once it closed higher than the previous monthly high. As a result, BTC could face up to a 1,000% price pump soon if it closes November at or above its current price.
BTC To Pump By 1,000% Soon?
Bitcoin has been surging in value in the past month. The impressive performance led to several consecutive yearly records and reaching $16,000 last Friday – the highest BTC price displayed since early January 2018.
Although the cryptocurrency has retraced since its peak and currently trades at about $15,400, the analyst Josh Rager suggested that the asset could soon skyrocket even further. Rager noted that “every time Bitcoin has closed above the previous monthly all-time high – a 700% to 1,000% uptrend has followed.”
The first similar scenario highlighted in his graph above occurred in 2013. BTC’s January monthly close was around $20, which coincided with the previous monthly high. Shortly after, the primary cryptocurrency spiked to about $150 – or a near 700% increase.
Somewhat identical events transpired on two more occasions in 2014 and during the parabolic price increase of 2017. The latter is also the current benchmark as BTC closed in December at about $13,880.
With Bitcoin’s price hovering above that level now, Rager believes that “November could be the first monthly close that we see breaking the previous high.”
Should his prediction materialize, Bitcoin will find itself in a six-digit price territory. The “modest” 700% increase will take BTC to $120,000, while the 1,000% surge will result in $170,000 per coin.
Is Smart Money Behind This Rally?
Another famous BTC analyst, Willy Woo, attributed Bitcoin’s latest price surge to smart money – high net worth individuals. He asserted that the average transaction value between investors had increased substantially in the past few months.
Who has been buying this rally? It’s smart money… High Net Worth Individuals. You can see the average transaction value between investors taking a big jump upwards. OTC desks are seeing this too.
Bitcoin is still in it’s stealth phase of its bull run. pic.twitter.com/3q41pmNVP9
— Willy Woo (@woonomic) November 9, 2020
Looking at the latest developments, it seems that there’s a lot of merit to Woo’s words. Giant companies such as Nasdaq-listed MicroStrategy and Jack Dorsey’s Square allocated millions of dollars in Bitcoin since September alone.
Additionally, prominent traditional investors such as Paul Tudor Jones III, Stanley Druckenmiller, and Bill Miller also outlined BTC’s store of value attributes as significant benefits. Consequently, they either decided to buy bitcoins or predicted that every major bank would eventually own BTC.
The leading digital asset manager, Grayscale, has also enjoyed 2020, despite the economic uncertainty. The company’s Grayscale Bitcoin Trust has seen record-breaking inflows quarter after quarter.