Bitcoin has seen an extremely strong rally in the past day, despite the mint facing a strong dip in Christmas. According to CoinGecko, the mint is up 8% in the last 24 hours alone, from the $ 24,500 region now to $ 26,700.
At its peak a few hours ago, BTC traded as high as $ 27,000 in some markets. Bitcoin outperforms altcoins as it continues to suck the air out of altcoins due to the power of the rally and the institutional focus on Bitcoin.
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Bitcoin could reach nearly $ 28,000
With such rapid upward price action, analysts have begun to speculate where this market will top.
A trader recently shared the chart below and assumed that the market could reach $ 28,000 in the short to medium term. The chart shows that Bitcoin’s relative strength index (RSI) is currently at its 2017 high, indicating that the market is to some extent overbought. While this doesn’t really indicate that an immediate correction will take place, it may indicate that investors need to be cautious about expecting further upside potential.
According to the analyst who shared the chart below, one point where this rally could top in the short to medium term is $ 28,000 to $ 29,000. That’s where there’s the 1,618 Fibonacci expansion of the rally from the 2017 Chinese “FUD” lows to the $ 20,000 highs.
Chart of BTC's price action over the past few years with an analysis by crypto trader and coder TraderXO (@Trader_XO on Twitter). Source: BTCUSD from TradingView.com Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin
Despite the recent rally and expectations of further gains, some are not putting much faith in the cryptocurrency.
Shark Tank star Kevin O’Leary recently called Bitcoin an institutional investment vehicle, citing the fact that his range of altcoins and BTC he bought in 2018 is now worth $ 50 instead of $ 100.
This is interesting because O’Leary once argued that every investor should have maybe 1-2% of their portfolio in Bitcoin to hedge against currency volatility.
Related reading: 3 Bitcoin On-Chain Trends Show A Macro Bull Market Is Growing
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Rapid Bitcoin Move Could Find a Top Near $28,000: Analyst