An all-time high for Bitcoin in the coming weeks is still on the cards, says a leading analyst.
Despite allowing its fingers to slip off the ledge of $57,500 this week, the leading cryptocurrency can still potentially summit the as-yet-unconquered $65,000 peak it came within a whisker of planting a flag in earlier this year.
That’s according to eToro senior analyst Simon Peters, who says historical data would suggest BTC climbing above April’s remarkable top of $64,863 could be a possibility within the next two months.
There are words of caution, however, as he also says the short-term thinking over an all-time high is being overtaken by a long-term approach of ‘hodling’ – a deliberate misspelling of ‘holding’ which is widely used throughout crypto circles.
“The market seems to be bubbling with anticipation of a new all-time high for Bitcoin, but calling it right now is a fool’s errand. Long term holders continue to HODL,” he said.
“Bitcoin’s current cycle appears to be playing out similarly to the 2013 cycle. A supply squeeze is underway and BTC is draining off exchanges.
“A move past ATH this month and/or early November would be in line with the pattern of the 2013 cycle, but we can’t be sure.”
Holding – or ‘hodling’ – has, he explains, dominated trading behaviour recently. According to Glassnode, more than 2.37m BTC has migrated from shorter term to longer term, with approximately 166,000 BTC having been mined in the last seven months.
Essentially, long-term holders are stashing away 12.7 times more coins than have been newly mined.
“That being said, focusing in on the drama of a fresh ATH is a short-sighted approach,” warns Peters.
“In the long-term we should see prices increase and eventually a new ATH will come. In the short term we could see some resistance at the $58,000-60,000 level, and potentially a pull-back to boot.
“Ultimately, investors in crypto should focus on the long-term benefits and use cases of the tokens. Focusing on short-term price movements is a highly risky approach for anyone to take.”