Will Bitcoin soon rise above $16,000? Trader names two bullish factors for upside potential
Bitcoin has experienced some slight turbulence in the last few hours after Pfizer developed a highly effective vaccine.
Initially, the news lowered the BTC price slightly, but since then it has shown signs of strength as buyers absorb sell orders.
It remains unclear whether or not this news and the ongoing rally in the equity markets in the days and weeks ahead is a good omen for the crypto currency.
If BTC continues to be traded like gold, it could soon take a nosedive down as precious metals and so-called „safe havens“ have been hit hard by the news.
One analyst points to a wealth of evidence suggesting that Bitcoin Trader app next big move will be a break above $16,000.
Bitcoin and the aggregated crypto market are experiencing stagnant growth, while the stock market is recovering today.
Pfizer had previously announced that its vaccine against the rapidly spreading virus has a 90% effectiveness.
This is great news for the stock market in terms of reducing global uncertainty and boosting the economy, but it is bad news for safe investments like gold – which has taken a nosedive today.
Bitcoin is still stable in the lower $15,000 range, but it also faced increased instability this morning.
Nevertheless, one analyst still believes that a move beyond $16,000 is imminent.
Bitcoin slows its rise due to vaccine news
At the time of writing, Bitcoin is trading slightly more than 1% lower at its current price of $15,300. This is roughly the price at which it was traded last week.
Although BTC has shown signs of correlation with both gold and equities in the past, its recent huge uptrend may have made it independent.
Its scarcity still makes it a great hedge against the threat of inflation, whether or not the economy remains partially shut down for a long period of time.
Analyst: BTC could recover over $16,000 next
One trader now writes in a recent tweet that both the strength of the stock market and the V-shaped reversal after Bitcoin’s slump to $14,400 indicate that a move beyond $16,000 is imminent.
„BTC – I would rather be Long towards NYO. A shorting into an earlier consolidation after a V-shaped reversal is a bear trap imo. Strong futures are open, V Reversal, after a lot of downward liquidity was attacked over the weekend. A retest at $16,000 earlier this week would be nice“.
The coming days should provide some insight into the correlation, which Bitcoin will follow in the coming weeks.