Bitcoin eyes $16,000 as Stanley Druckenmiller reveals long position

The cost of Bitcoin (BTC) seems to be determined to pop above its $16,000 mental threshold as the cryptocurrency jumped to $16,200 in early cryptocurrency trading activity today, making this the second time in which the cryptoasset has actually traded above this level because the month started.

This most current bull run appears to be driven by comments from billionaire investor Stanley Druckenmiller, who divulged that he currently holds a position in Bitcoin (BTC), following a comparable financial investment thesis to the one he has on gold. The founder of Duquesne Capital highlighted that both instruments can act as a hedge against the continuous fiat debasement continued by reserve banks.

These remarks helped reverse the downtrend set off by Pfizer’s vaccine news, as the price rebounded from a $14,800 short on Monday to as much as $15,800 today after pulling away from an intraday high of $16,200.

Meanwhile, today’s uptick seen by Bitcoin is also partly supported by a weaker dollar, as the value of the North American currency– tracked by Bloomberg’s US dollar index (DXY)– is down 0.13% at 92.872 in early forex trading action.

In regards to his position in Bitcoin, Druckenmiller informed CNBC: “Honestly, if the gold bet works the bitcoin bet will most likely work better due to the fact that it’s thinner, more illiquid and has a lot more beta to it”.

He further added that there is “a great deal of tourist attraction” to the cryptocurrency as a shop of value from millennials and from a group that he denominated as “West Coast cash”, describing rich tech specialists who reside in Silicon Valley, California– an area that is considered a center of innovation for America.

What’s next for Bitcoin?

Bitcoin (BTC) has actually delivered an amazing 120% gain given that the year started, as the cost of the cryptocurrency has actually responded favorably to the most recent weakness seen by the US dollar amidst the Federal Reserve’s accommodative monetary policy.

That said, the greenback’s decline only describes a part of Bitcoin’s bull run, as a retail trading boom has actually likewise benefitted the cryptocurrency, while data also reveal that Bitcoin and other cryptoassets remain a leading choice amongst the portfolios of the more youthful generation.

Additionally, Bitcoin traders are likewise depending on increased interest from institutional financiers as a potential driver for more powerful upward relocations, which is the reason Druckenmiller’s remarks are considered bullish by crypto financiers.

Bitcoin (BTC) rate chart– 1-hour candle lights see with RSI, MACD, and volume– Source: TradingView

The per hour chart above shows 2 similar ascending triangles forming, with the first one preceding Bitcoin’s uptick from $14,000 to $16,000 while the 2nd one might turn out likewise as the $16,000 resistance continues to be compromised.

Conservative traders might wait till the cost breaks above the $16,000 level again before getting on board, while aggressive traders may prefer to take a position now to make the most of today’s breather.

Bitcoin (BTC) price chart– 1-day candle lights see with volume, RSI, and MACD– Source: TradingView

If the rate were to move above $16,000, the next stop could be the $17,200 resistance seen in January 2018, with all-time highs on sight if this favorable momentum continues.

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