- Bitcoin supported by $54,000.
- Next resistance at $57,000.
- 100 MA currently being tested.
Today’s Bitcoin price prediction is bullish as the market surges higher after retesting previous support at the $54,000 mark. Currently, BTC/USD has approached resistance at $57,000, which if broken should lead towards a medium-term reversal from the bearish momentum seen last week.
Cryptocurrency heat map. Source: Coin360
The overall cryptocurrency market continues pushing higher over the last hours. Bitcoin is up by 4 percent, while Ethereum still holds around 1.7 percent gain. The worst performance from the major altcoins is seen for Ripple, as it is down by 2.63 percent over the last 24 hours. Theta has posted the best result, with a gain of 21 percent. If the current bullish momentum persists, we should see even higher price increase by the end of today.
Bitcoin price prediction: Bitcoin retests $54,000, moves higher
BTC/USD opened at $54,333 after very calm yesterday. Since then, the market has moved much higher as it looks to retest resistance at the $57,000 mark. If the bullish Bitcoin price momentum can continue later today, we are likely to see the resistance broken. Alternatively, the market will reverse and set another lower swing high, which should lead to more downside over the next few days.
Bitcoin price movement in the last 24 hours
Over the last 24 hours, Bitcoin has moved in a range of $53,827 – $56,761, indicating a good amount of volatility. 24-hour trading volume has decreased by 7.18 percent and totals $58.2 billion. Meanwhile, total market capitalization still stands above the $1 trillion mark.
BTC/USD 4-hour chart – BTC rebounds from $54,000
On the 4-hour chart, we can see the price of Bitcoin pushing higher over the past hours after support at $54,00 was retested with a clear rejection. Currently the Bitcoin price has approached next resistance at $57,000.
BTC/USD 4-hour chart. Source: TradingView
Overall, Bitcoin has experienced bearish momentum over the past 10 days. After setting a new all-time high just below the $62,000 mark, BTC/USD retraced by over 10 percent and found support around $54,000.
From there the Bitcoin price unsuccessfully attempted to move higher again and peaked at the $60,000 mark. After consolidating below this area for several days, BTC reversed lower and dropped all the way back towards the previous support of $54,000.
This drop has resulted in another consolidation around the support yesterday. However, today, Bitcoin started moving higher again and currently is close to testing the $57,000 mark. Additional resistance is provided by the area between both 50 and 100 period MA`s.
If the current Bullish Bitcoin price momentum continues, we should see this resistance break over the next hours. This could lead Bitcoin towards the next resistance of $60,000 by tomorrow and indicate that bullish momentum has taken over again.
Alternatively, if BTC/USD gets resisted by the resistance at $57,000, we could see another lower swing high set and another medium-term downswing lower. Potential next support level around $51,500 would mean another drop of around 10 percent from the current price.
Bitcoin Price Prediction: Conclusion
Bitcoin price prediction is bullish as the market retested previous support at the $54,000 mark and currently pushed higher towards $57,000 resistance. If this resistance is broken, we can expect more upside over the next 24 hours. Alternatively, if BTC/USD rejects $57,000 resistance, we could see another medium-term push lower as the market looks to set another lower swing low.
For further reading, see our Bitcoin halving guide and comparison article on Bitcoin vs Ethereum. If you are looking for an altcoin, check our Dent Token price prediction.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
JPMorgan: Inflation Hedge Narrative Propelled Bitcoin’s Price to ATH
According to some JPMorgan analysts, bitcoin hit an ATH because people started investing in it as a better hedge against inflation than gold.
Strategists at the financial institution JPMorgan Chase & Co. argued that the reason behind BTC’s all-time high price is not the launch of the ProShares Bitcoin Strategy ETF. Instead, concerns about the rising inflation made the digital asset an attractive investment option, and that led to its recent rally.
Gold Failed, BTC Prevailed
The moment, which many people in the cryptocurrency community have been waiting for, finally arrived on October 19th when the ProShares Bitcoin Strategy futures-backed ETF, named BITO, started trading on the New York Stock Exchange. It became the first such product approved in the United States.
During the first day of its launch, it generated massive trading volumes and even became the second-highest traded fund ever. Shortly after, BTC’s USD value headed straight north towards a new all-time high at roughly $67,000.
Still, according to JPMorgan strategists, including the managing director Nikolaos Panigirtzoglou, another factor drove bitcoin to that milestone. The specialists indicated that the cryptocurrency had replaced gold as a hedge against inflation in recent months, which had propelled the price north:
“By itself, the launch of BITO is unlikely to trigger a new phase of significantly more fresh capital entering bitcoin. Instead, we believe the perception of bitcoin as a better inflation hedge than gold is the main reason for the current upswing, triggering a shift away from gold ETFs into Bitcoin funds since September.”
JPMorgan’s team noted that the last couple of weeks were not that successful for the precious metal. Taking a look at a broader period, bitcoin ETF’s have significantly outpaced gold ones, as the strategists revealed:
“This flow shift remains intact supporting a bullish outlook for Bitcoin into year-end.”
Can BTC Now Change The Stance of The Big Boss?
Jamie Dimon – Chief Executive Officer of JPMorgan – is among the most prominent critics of the leading digital asset. Still, it seems like he has started releasing the tight grip on it.
It all started in 2017 when the top executive called bitcoin a “fraud.” Dimon did not stop there and warned that “it’s worse than tulip bulbs. It won’t end well. Someone is going to get killed.” Shortly after, though, he regretted making that comment, and his financial institution became much more accepting of BTC.
Last year, Dimon weighed in on the matter once again. This time he was softer in his comments saying that bitcoin is not his “cup of tea” and that he has no personal interest in it.
A few days ago, the CEO returned to his negative phase, describing BTC as “worthless.” Nevertheless, he acknowledged that most of JPMorgan’s clients do not share his opinion and show an increasing demand for digital asset services.
With BTC charting a new all-time high, the crypto community is yet to find out whether Dimon will maintain his hostile viewpoint on the matter or rather soften a bit and allow more offerings to his bitcoin-hungry customers.
Another One: Valkyrie Bitcoin Strategy ETF to Commence Trading on Friday
Another futures-backed Bitcoin exchange-traded fund (ETF) is set to begin trading on Friday.
The Valkyrie Bitcoin Strategy ETF is slated to commence trading on the Nasdaq stock market on Friday, Oct 22, just four days after the first-ever BTC futures fund was launched.
Bloomberg senior ETF analyst Eric Balchunas has confirmed that the Valkyrie fund will be launching on Friday after initially stating it would be trading today.
He added that the firm has also changed its ticker from BTFD to BTF, commenting that the Securities and Exchange Commission “probably wasn’t a fan” of the former. BTFD is an acronym for “buy the f*cking dip” in crypto circles.
Later on, a company representative confirmed to Bloomberg that the ETF is indeed scheduled to launch on Friday.
VanEck Bitcoin Fund on Monday
Just like ProShares, the Valkyrie product will not be investing directly in Bitcoin but will seek to purchase a number of BTC futures contracts. It will attempt to ensure that the total value of BTC underlying the futures contracts held by the fund is as close to 100% of the net assets as possible.
JPMorgan Names Trigger for New Bitcoin ATH and It’s Not BITO ETF Launch
As per the recent Bloomberg piece, JPMorgan investment banking behemoth reckons that it was not the BITO Bitcoin ETF launched on the NYSE on Tuesday that pushed the flagship cryptocurrency to a new all-time high of $66,930.
“Bitcoin’s historic peak fueled by inflation concerns”
Strategists of JPMorgan reckon that the most likely reason for the massive Bitcoin rise to a new all-time high on Wednesday has been inflation, rather than the BITO Bitcoin ETF rolled out by ProShares on Fidelity’s NYSE on Oct. 19. This means BTC is rising due to monetary access, comments chief economist at Tressis, Daniel Lacalle.
Nikolaos Panigirtzoglou and the bank’s other strategists wrote that an ETF launch was unlikely to attract a lot of new capital into the leading digital asset. According to them, the reason is, rather, people believing Bitcoin to be a stronger hedge against inflation than gold. They have been watching cash moving out of gold ETFs and into Bitcoin since the start of September.