In the midst of bitcoin’s explosive surge that took its prices above $9,000 per token, Mohit Sorout of Bitazu Capital reiterated his $13,000 price target of the cryptocurrency.
The hedge fund manager tweeted a bitcoin chart that showed the cryptocurrency tailing the path of his bullish prediction from late February. He noted that bitcoin’s latest jump brought it above a combination of support levels, mainly the so-called ‘MSORO bands,’ confirmed a renewed buying sentiment among traders.
MSORO BANDS charts the sum of open long and short positions | Source: Mohit Sorout
Mr. Sorout’s $13,000 price target also flashed after bitcoin confirmed strong demand near its 50% Fibonacci retracement level (~$8,450). The cryptocurrency earlier this month rebounded from the said area, rising by up to 8.91 percent as of Thursday.
The blue bar reflects the 50% Fibonacci level | Source: Mohit Sorout
Its move upside brought a $10,000 price target back in view, leading Mr. Sorout to add that 50% level was also a key support to ensure a sustainable upside move towards $13,000. He also noted that $9,600 now serves as the next ideal level to buy bitcoin, following which the bitcoin’s bullish move may continue up and beyond the $10K threshold.
Bought the $BTC bottom.
Send to $13k in next 45 days. pic.twitter.com/ZXwlq1ViJo
— Mohit Sorout ? (@singhsoro) February 28, 2020
Studying Likelihoods
Bitcoin’s jump above $9,000 came in the wake of stimulus package announcements all across the world. The US Federal Reserve on Tuesday announced a surprise rate cut of 50 basis points to safeguard its economy from a slowdown caused by the spreading of Coronavirus (COVID-19).
In a similar move, Bank of Japan and the Reserve Bank of Australia played saviors to offset the risks associated with the virus outbreak. While the former pledged a stimulus package, the latter slashed its key lending rate by 0,5 percent. Following March 12, the European Central Bank could also take precautionary decisions, which may include cash injection.
The central banks’ dovish policies have helped both risk-on and risk-off assets to recover from their monthly lows. Global stocks rebounded but amidst growing concerns of a virus epidemic. Similarly, gold prices escalated but with caution. At the same time, bitcoin too surged but didn’t promise to extend its rally like its peers in the traditional markets.
Something very exciting changed after the global central bank stimulus promises yesterday. Whilst too soon to call a trend, #Bitcoin, Bonds & Gold are edging higher, inverse to stocks who are again correcting. These are goldilocks conditions for hard assets. Time to shine! ??️? pic.twitter.com/4FbXjNNKy9
— Alex Saunders (@AlexSaundersAU) March 5, 2020
Bitcoin to $20,000?
But optimism to break above $10,000 remains higher among those who believe bitcoin as the last-remaining scarce asset against man-made inflation in the financial markets. Mr. Sorout’s $13,000 prediction also appears at a time when bitcoin will be less than a month away from cutting its supply rate by half.
Another hedge fund manager agrees. Mike Novogratz, the CEO of Galaxy Digital and a former partner at Goldman Sachs, thinks bitcoin’s bullish targets lies near $20,000 ahead of the halving in May 2020.
“Right now, Bitcoin feels a little frenzied and we could see it surge up, but I think that by the end of the year we could certainly take out the old highs, or at least we go to the old highs,” he told CNBC. “We might be there literally by the halving, which is in a couple of months.”