Bitcoin price could continue higher as bullish momentum improves, PIMCO buy more crypto

By Selena On Oct 21, 2021

Bitcoin price rallied to an ATH of nearly $67,000, reversing a nearly 50% correction earlier this year. Traders remain optimistic and expect further upside across cryptocurrencies as the ProShares Bitcoin Strategy ETF debuted on Tuesday. The rally sparked a new wave of bullish predictions. At the time of writing, BTC is trading at $65,184, still recorded a 12% increase in the past seven days.

BTC/USD 4-hour chart | Source: TradingView

Bitcoin price hits an all-time high, will it breakout target $86,000?

Bitcoin breaking its all-time high was a long time coming and had been in the making ever since the asset shed 50% of its value in May. Now, we can expect the price to rocket past the $100,000 mark, which a growing number of market analysts are penciling in as their new price target.

The market’s previous all-time high was $64,889 in April. Since then, market prognosticators have seen that mark as the price to beat. Now, with fewer readily available signposts, the outlook might be more brutal to gauge.

Currently, the signals from the price chart suggest it could continue higher as the bullish momentum improves. A successful breakout will require a daily close above $65,000, which will provide upside targets towards $74,000 and $86,000.

The world’s largest cryptocurrency price by market capitalization has fully recovered from a near 50% correction earlier this year, stabilizing around the $30,000 support. Since then, buyers reacted to oversold conditions and accumulated long positions, anticipating BTC’s value to increase over time.

“Bitcoin has hit a new all-time high of $66,952, making history for the first time since the last ATH on April 14. Sentiment is predictably rising, and important metrics like rising circulation and address activity played a big role in this milestone”, Santiment stated.

Source: Santiment

The next resistance is seen around $74,000, which could briefly halt the current upside momentum. However, buyers will likely remain active above the $60,000-$65,000 support range due to the positive momentum signals on the weekly chart.

If support holds, BTC could rally further towards $86,000, based on a measured move from the October 1 breakout above the 200-day moving average. Not everyone is bullish. Some analysts said Bitcoin would find further gains past the $60,000 mark more challenging to come by.

According to a report by CNBC, $2.2T asset manager PIMCO is planning to increase its exposure to digital currencies such as Bitcoin after dabbling in the asset class through crypto-linked securities, offering the latest evidence that significant institutions are starting to embrace the emerging asset class. PIMCO, founded in 1971, is one of the world’s largest asset managers focusing on active fixed-income securities. The company’s total assets under management are $2.2 trillion as of December 31, 2020.

CEO Daniel Ivascyn confirmed that PIMCO already has exposure to crypto-linked securities through various hedge fund portfolios. He said the firm plans to gradually increase its exposure to the asset class as part of its trend-following strategies or quant-oriented strategies.

“This will be a gradual process where we spent a lot of time on the internal diligence side speaking to investors. And we’ll take baby steps in an area that’s rapidly growing,” he further explained.

At the moment, the whole market is displayed in green. The top 10 CoinMarketCap has Ethereum price, the second-largest cryptocurrency on the market, which has increased by more than 8% in the past 24 hours. ETH has crossed $4,200 but is currently trading at $4,184.

“Ethereum’s top addresses have accumulated ETH steadily since early August, and it’s no surprise to see the second asset approaching an all-time high of its own. In the past ten weeks, addresses with 1M to 10M ETH have accumulated 13.9% more to their bags”, Santiment stated.

Source: Santiment

Given the current situation, BTC may slow down a bit and leave room for altcoins to grow. After ETH takes the lead, the next startups will likely be Binance Coin (BNB), Solana (SOL) và Polkadot (DOT).

Most altcoins ended the day higher but have yet to show significant gains. The overall cryptocurrency market cap stands at $2.633 trillion, and Bitcoin’s Dominance is 46.5%.

Read more: