In a recent Tweet, the team at Weiss Crypto Ratings said that Bitcoin (BTC) seems to be decoupling from stocks. This conclusion is as a result of Bitcoin breaking the $12k and $13k price ceiling in quick succession boosted by the news of PayPal offering crypto services to its clients.
Weiss Ratings also cautions Bitcoin users that there is a slight chance that Bitcoin could lose steam:
“Bitcoin seems to be decoupling from stocks with a parabolic rise in recent days. Let’s hope it doesn’t lose steam.”
This event of decoupling of Bitcoin from the traditional markets was predicted by veteran Bitcoin analyst Willy Woo in a September 25th tweet that stated the following:
“Bitcoin will decouple from traditional markets soon, but driven by its internal adoption s-curve (think startup style growth) rather than changes in perceptions as a hedging instrument by traditional investors. Fundamentals of user adoption have already broken all-time highs.”
Mr. Woo reiterated his analysis further in a follow-up tweet a day later providing on-chain data to back up his prediction.
How High Can Bitcoin Go?
Heeding the words by the team at Weiss Crypto Ratings, Bitcoin is due for some sort of correction or consolidation based on the impressive surge from $11,500 levels on Monday, October 19th, to its current value of $13,000. Additionally, earlier today, Bitcoin set a 2020 high of $13,267 – Binance rate, which is a 15.3% move in less than a week.
For Bitcoin to continue with its momentum and possibly retest its 2019 peak value of $14,000, it must cool down for a few hours or days. If Bitcoin finally breaks and holds $14k, it can open the doors to $17k or even $20k in the coming weeks or in the first or second quarter of 2021.
As with all analyses of Bitcoin, investors are recommended to have adequate stop losses and practice the habit of profit-taking whilst still ahead. Moreover, low leverage is advised when trading Bitcoin on the different derivatives platforms.