newsbtc.com
- Bitcoin price could hit $120,000 in the coming years, according to a chart with alleged links to Citibank.
- The unverified image, first shared by Altana Digital Currency’s CIO Alistair Milne, depicts Bitcoin in a 2.5 years-long bull run.
- It also highlights the cryptocurrency’s potential to breach above $19,500 by 2021.
A Bitcoin chart with links to Citibank, a global banking giant, envisions the cryptocurrency at over $120,000.
First shared by Alistair Milne, the chief investment officer at Altana Digital Currency – a Monaco-based crypto fund, the image depicts BTC/USD in a long-term logarithmic uptrend. It highlights the cryptocurrency’s major breakout moves from late-2011 and mid-2016 as fractals to predict its future price. Excerpts:
“The setup over the last 2.5 + years in Bitcoin continues to crack closely to that over the 2.5 + years leading to the summer of 2016 before it started to move exponentially higher.”
BTC/USD price uptrend as allegedly noted by Citibank. Source: Alistair Milne
The chart adds that Bitcoin is at the cusp of repeating the same bullish move as it tests $10,500-10,820 as resistance. The cryptocurrency would first target $13,850, followed by an extended move towards $19,500 by 2021.
“If $19,511 was to give away, well the chart speaks for itself,” Citibank writes [allegedly].
Mr. Milne claims that strategists at Citibank delivered the bullish Bitcoin chart to CitiFX Wire, a service that feeds Citi’s clients via a so-called “DeskTalk.”
Ideal Timing
The Citibank’s alleged involvement with Bitcoin appears at a time when the cryptocurrency is rallying on the growing demand for safe-haven assets. The BTC/USD last week surged from as low as $9,100 to top near $10,333 as of today.
BTC/USD and XAU/USD correlation grows higher against a falling US dollar. Source: TradingView.com
Its rally appeared alongside that of gold, a traditional hedging asset that established its all-time high today. Both it and bitcoin surged as the US dollar slipped to its two-year low – and yields on the US Treasury fell in tandem.
Bobble Lee, the founder/CEO of crypto wallet Ballet, said the newly developed correlation with rivaling hedging assets improves Bitcoin’s outlook for the rest of 2020. The analyst wrote:
“I am expecting [BTC] to march up to its all-time high of $20,000 from 2017.”
Today is special: #Gold has just surpassed $1,940, breaking its ALL-TIME HIGH record of $1,920 set exactly 9 years ago in August 2011. The rally goes on!
Without coincidence #Bitcoin has just broken $10,000! I’m expecting it to march up to its all-time high of $20,000 from 2017.
— Bobby Lee – Ballet: Simple & Elegant Wallet (@bobbyclee) July 27, 2020
Kyle Bass, the chief investment officer of Texas-based Hayman Capital Management, also repeated the same bullish stance, adding that “the sheer amount of money printing going on around the world” would push the prices of silver, gold, and bitcoin higher.
Bitcoin Downside Calls
As Citibank and others see BTC/USD breaking out towards an all-time high, some are still skeptic about a full-blow price rally.
Peter Schiff, the CEO & co-founder of Euro Pacific Management, highlighted Bitcoin’s ability to sustain an uptrend above $10,000 in over the last 12 months. The cryptocurrency’s last attempts to hold a six-figure region ended up in a 15 percent and 63 percent downside moves in June and February 2020, respectively.
Two of the last three times #Bitcoin rose above $10,000 in Oct. of 2019 and in Feb. of 2020 it soon fell by 38% and 63% respectively. The last time Bitcoin rose above $10,000 was in May, and it only fell by 15%. It's above $10,000 again today. How big will the next drop be?
— Peter Schiff (@PeterSchiff) July 27, 2020
Meanwhile, the possibility of BTC/USD correcting below $10,000 has also grown higher due to a gap in its CME futures chart. Historically, traders go back to fill the missing candle. As of now, that gap is at $9,925-9,665 range.