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Analyst Says Bitcoin Could Hit $62K This Year Based on Technical Signals

Last Updated March 4, 2021 2:36 PM
Harsh Chauhan
Last Updated March 4, 2021 2:36 PM

By CCN.com: Bitcoin is flying high in 2019. The price of the flagship cryptocurrency is now well past the $9,000 level. But there are quite a few analysts out there who believe that bitcoin’s meteoric rise isn’t over yet.

Galaxy, a well-followed crypto handle on Twitter, predicts that the price of bitcoin could hit all-time highs of $62,000 in about four months.

Favorable Technicals Could Power Bitcoin Higher

Galaxy is one of many bitcoin bulls counting on favorable technical patterns to sustain the price rally. Noted bitcoin analyst Robert Sluymer of Fundstrat Global Advisors recently advised investors to load up the digital currency on the back of improving technicals.

Fundstrat co-founder and head of research Thomas Lee, on the other hand, is unabashedly bullish about where bitcoin is heading. He predicts that the price of bitcoin could surge 200% to 400% once it breaks past the FOMO level of $10,000, indicating that the digital currency could quadruple in a few months .

Galaxy is adding to that chorus by turning back the clock a couple of years to when bitcoin enjoyed a massive rise of nearly 600% in a span of fewer than 150 days.

Now it might not be a good idea to rely on the past to believe that the digital asset will hit new record highs in a matter of just months. But there’s enough fundamental evidence out there suggesting that’s possible.

Solid Fundamentals Will Be a Tailwind

Bitcoin fundamentals are looking increasingly positive thanks to several developments, the latest one being the launch of Facebook’s Libra whitepaper. Market watchers firmly believe that Libra will fuel global bitcoin adoption.

Barry Silbert, CEO of Digital Currency Group (the company behind Grayscale), believes that Libra will be a big catalyst for bitcoin adoption:

Hedge funds are piling into the digital asset, indicating an uptick in institutional investing thanks to its newly found status as a safe-haven asset.

Investment firm Grayscale revealed that during Q1 2019, inflow from hedge funds jumped to $24 million vs. just $1 million in the preceding quarter, representing a massive increase of 2,400%.

What’s more, 99% of Grayscale’s clients directed their inflows into a bitcoin trust as compared to other financial products that it offers.

A combination of higher demand and favorable technical trends could push the price of the digital asset to new highs in the coming months, so don’t discount Galaxy’s $62,000 price target as a wild fantasy.