Calm before the storm? Analyst says $20K Bitcoin possible in 3 months

Published on by Cointele | Published on

The price of Bitcoin has been consolidating within a tight range for several months.

Since July 2020, Bitcoin has been ranging between $10,200 and $11,800, a 15% range.

When Bitcoin stays stable for a long time in a tight price range, a major price movement typically occurs.

Why three months for a Bitcoin all-time high following a breakout?

Based on previous price cycles, Bitcoin tends to move fast after existing a long-range.

From May 1 to July 20, Bitcoin ranged between $8,800 to $9,800, stabilizing at around $9,100.

After two months of consolidation, it took BTC 12 days to record a 32% rally to $12,123 on Binance.

According to Sorout, a price increase towards $20,000 could happen even earlier than three months.

A strong narrative around a Bitcoin bull cycle heading into 2021 remains the recent upsurge of institutional demand.

Institutions that have been acquiring Bitcoin, like Square and MicroStrategy, said they perceive Bitcoin as a potential treasury asset.