BUY BITCOIN
Bitcoin’s boring price action seen throughout the past few months has caused its trading volume and liquidity to both dive lower.
It appears that many traders are turning towards the more traditional markets to get their fix of volatility, with some equities like Tesla (TSLA) seeing massive rallies over the past couple of weeks.
Although Bitcoin’s lackluster price action doesn’t appear to be letting up anytime soon, the cryptocurrency may eventually see a rally similar to that posted by TSLA.
That being said, one analyst is noting that there is a crucial level it first needs to surmount for this to be a realistic possibility.
He notes that if Bitcoin can break $10,500, a myriad of factors could provide it with a tailwind that is stronger than that seen by Tesla’s stock, possibly allowing the cryptocurrency to start a parabolic ascent.
Bitcoin Struggles to Track the Momentum Seen Within the Stock Market
The ongoing pandemic, economic shutdowns, and soaring unemployment rates haven’t stopped the stock market from staying within firm bull territory.
This has allowed many companies to see their share prices hit all-time highs – and there’s no better example of this than Tesla.
The electric car manufacturer made headlines in early 2020 when its price gained significant momentum that allowed it to climb from $400 at the start of the year to highs of $900 in late-February.
Interestingly, the timing of TSLA’s rally coincided almost precisely with that seen by Bitcoin, and their prices both topped out within days of one another.
From here, traders began taking profits, causing the stock’s price to plunge towards $400 in a movement that was perpetuated by the market-wide selloff.
In the time since Tesla has seen a parabolic “V-shaped” recovery that allowed it to set all-time highs of nearly $1,800 earlier this past week.
Chart via TradingView.
This type of price action is what Bitcoin investors dream about, but the benchmark digital asset has been stuck between $9,000 and $10,000 for the past several months.
Here’s the Level BTC Needs to Break to See a “Tesla Sized” Rally
One analyst does believe that Bitcoin could soon see a rally of a similar magnitude to that seen by Tesla.
He postulates that for this possibility to come to fruition, the cryptocurrency will need to rise past $10,500. He points to “super low float” and more eyes watching BTC as factors that could help it surge higher.
“When Bitcoin breaks back above 10.5k I think it’s going to move faster than TSLA did. Super low float and way more eyes on it now. Nothing pumps like BTC,” he explained.
It still remains unclear as to just how long it will be before the cryptocurrency breaks its pattern of trading sideways and ventures back up to its yearly highs.
Featured image from Unsplash. Charts and pricing data via TradingView.
