Bitcoin has been on fire during the past 48 hours, thanks to the ‘PayPal crypto on-ramp launch news.’ What is even more interesting to note is BTC’s future market outlook.
Veteran trader and analyst Peter Brandt said that the cryptocurrency is about to log its second-highest monthly close since it started trading first. Brandt says this is a direct result of institutional involvement.
Bitcoin Poised To Log Second Highest Monthly Close
An accomplished forex and stocks trader with more than 40 years of experience under his belt, Brandt always delivers unbiased trading insights for bitcoin and other cryptocurrencies. And the community greatly respects him for the same.
The latest BTC rally made him evince another trend that will significantly boost the confidence of bitcoin bulls. According to Peter, bitcoin will successfully register its second-highest monthly close if it maintains its momentum through October.
Bitcoin — IF the current gains hold through end of Oct — is poised for the second highest monthly close ever$BTC
Institutions are increasingly involved in Bitcoin ownership
Institutions mark the value of their assets monthly pic.twitter.com/L71AMvvann
— Peter Brandt (@PeterLBrandt) October 21, 2020
BTC Rallying On The Back Of Institutional Involvement
Also, the veteran trader attributed this rally to the increasing involvement of institutions. What he meant is that in 2017, institutional investment in the bitcoin market was not significant. But this year, it’s different. Market analysis firm Skew’s latest update on surging open interest in the bitcoin options space corroborates this claim.
— skew (@skewdotcom) October 22, 2020
Although there is $1.8 billion worth of unsettled BTC options contracts on Deribit, CME options traders have exchanged contracts worth $441 million. Given the sheer high number of hedge funds and institutional investors that the platform serves, this is pretty much a decent testimony of the degree of bitcoin’s maturity as an asset.
A Brief Pullback Is On The Cards However
Peter Brandt’s bullish outlook for Bitcoin may foment some serious buying. Still, a reputed TradingView analyst named ‘Wyckoffmode'(WM) observed that BTC would undergo a brief pullback before rallying up higher.
Backing his claim through technicals, WM said that on a 12-hour timeframe BTCUSD chart, the Relative Strength Indicator (RSI) ‘White Energy’ line after touching 56, is heading for levels near 50.
This might cause the cryptocurrency to log a brief pullback after such a face-melting rally to $13,000. According to WM, ‘a look at the current levels of the Red and White Energy in the 24h, 2-Day, 3-Day, and 4-Day time frames’ further reinforces the ‘pullback scenario.’
The trader says that bitcoin will experience sustained ‘upward pressure’ before the White Energy line travels to the aforementioned 50 level. This is a historical trend that is observable across the entire bitcoin price chart over multiple time frames.