Bitcoin continues to climb the highest recorded monthly closing

Last Updated on November 1, 2020

Bitcoin Price Outlook: 28th October 2020

Bitcoin has gained upward momentum since last week, adding about $1500 in nearly ten days, which has led to mixed expectations about the future of the cryptocurrency by many analysts.

The leading digital currency has surpassed the previous resistance level of $ 12,000 last week, breaching the $ 13,000 level that appears to be the support level for the currency, analysts argue that it may soon head towards the $ 16,000 level if $14,000 is secured.

Bitcoin today traded above $13850 for the first time since January 2018 and is the highest since then before falling above $13200, and it seems that it is heading towards recording its highest monthly close in the history of the cryptocurrency.

Bitcoin chart shown on 28th October 2020

 

Some believe that Bitcoin will swallow a lot of capital and dominate the markets, achieving broad growth in the next 18 months, due to the political and economic uncertainty, stressing that the global financial markets are currently witnessing intense selling and that precious metals are witnessing a state of relative calm.

Bitcoin separation from Wall Street

Bitcoin’s 2020 rallies showed signs of disconnecting from Wall Street, as the currency reached another high for 2020 at over $13,850, moving away from the 2019 peak as well, and Bitcoin’s dominance surged above 62.5%, its highest level in more than two months.

Interestingly, the cryptocurrency’s gains came despite unfavorable events on Wall Street, as those higher gains were offset by major failures in the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite.

PayPal changes views of Bitcoin

The world’s largest online payments company PayPal’s decision to allow customers to buy and sell cryptocurrencies on its platforms and keep them in their portfolios was a watershed decision in shifting views on investing in Bitcoin, despite his negative views on the crypto asset class in 2013, and in the aftermath, This move the currency exceeded the price of $ 13,000.

As other well-known companies such as Square, MicroStrategy, and Stone Ridge have bought Bitcoin assets, these accelerated actions indicate signs of close adoption of the cryptocurrency, as it is expected that the investment policy in Bitcoin will continue through its purchase by major companies and institutions during the coming period.

On the other hand, the results of the US presidential elections will be positive for the cryptocurrency. In the event that President Donald Trump wins, he will be welcomed in the stock market and Bitcoin will continue to grow alongside other assets, but in the event that the Democratic competitor, Joe Biden wins, Which may be accompanied by a drop in the stock market could also work in Bitcoin’s favor, based on an anticipation of a depreciating dollar.

Growth engines

The expansion of the second wave of the Coronavirus in Europe and the United States will negatively affect the financial markets, which will force central banks to respond through more stimulus policies, which will have a positive impact on Bitcoin, both in the short and long term.

Certainly, the second stimulus package will be approved by the US government in any case, which will support the stock markets and cryptocurrencies as well, and negatively affect the US dollar, which will be greatly revised.

Professional Trader and Analyst, economist in Financial and Forex marketsince 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.
Mohammed Abdelkhalik

Relevant news