Bitcoin may be breaking free from its correlation with the stock market and gearing up for a parabolic 2021, according to a new report from Bloomberg.
The financial news outlet’s latest monthly outlook on crypto calls Bitcoin a “caged bull” that could be on the cusp of a massive long-term breakout.
Bitcoin may be in early days of ending its constraining relationship with the Nasdaq 100 Stock Index, in our view. Technically, the Bitcoin-to-Nasdaq ratio near 1.2 on Oct. 27 has extended above 1.1 resistance that has held for about a year.”
According to the report, Bitcoin’s resistance at $10,000 may morph into resistance at $20,000 next year.
The report cites Bitcoin’s dwindling supply and ultimate cap of 21 million coins as a key driver placing the leading cryptocurrency on a positive trajectory.
It also names steady BTC buys from the institutional crypto asset manager Grayscale as a factor supporting Bitcoin’s price.
Bloomberg analyst Mike McGlone says Bitcoin’s 2020 price action is also reminiscent of 2015, ahead of a bull cycle that ultimately saw BTC rise by 100x.
We see Bitcoin volatility declining with natural maturation and little chance of similar high-velocity appreciation, but the indication is clear: Unless something significant trips it up, the crypto’s price is ripe to advance in the coming years.”