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"Bitcoin price could hit 20k in 3 months"



Mohit Sorout, co-founder of Bitazu Capital, a cryptocurrency hedge fund that focuses on algorithmic momentum trading, says that Bitcoin could rise to a new all-time high in three months when it breaks out of its existing range.

The asset price has been playing within a tight range for a couple of months, and the analyst claims that a new high would be imminent. The 15% range recorded since July 2020 shows that the price of BTC ranged between $ 10,200 and $ 11,800.

History shows that when Bitcoin is stable for a long time in a narrow price range, a major price movement usually occurs.

It's unclear if a breakout will occur in the short term, or if it will occur at all, but if it does, Sorout says it will take three months for BTC to reach $ 20,000.

Sorout's three-month theory

Since previous price cycles, Bitcoin is moving faster after a long range, and the pattern applies to both breakouts and breakouts.

From May 1 to July 20, Bitcoin ranged between $ 8,800 and $ 9,800 and stabilized at around $ 9,100. After two months of consolidation, it took 12 days for BTC to register a 32% increase to $ 12,123 on Binance.

Strout conveyed these sentiments through this tweet.

Responding to questions about why he thought three months was the magic time frame, neither longer nor shorter, Sorout said it was an observation based on how violent the spikes are after moderate periods of volatility.

Factors That Could Strengthen BTC's Uptrend

There has been a strong narrative around a bull cycle for Bitcoin in Q4 2020 and heading into 2021. This is supported by an increase in institutional demand for the asset.

After the US Commodities and Futures Trading Commission charged against BitMEX, the general open interest in futures fell and could lead to a more stable and gradual uptrend for Bitcoin, unlike previous bull cycles.

Additionally, on October 17, Barry Silbert, CEO of Grayscale, said the firm reached a record assets under management of $ 6.4 billion, and tweeted that the firm posted large entries this week.

Institutions that have been acquiring Bitcoin like Square and MicroStrategy said they perceive BTC as a potential treasury asset. That could mean that many institutional investors are hoarding the asset with no plans to sell in the near future.

Although the price of BTC has remained relatively stationary throughout October despite high institutional inflows, Stock-to-Flow (S2F) creator PlanB said via a Tweet that asymmetric returns could occur over time.


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