A recent report by ARK Investment Management LLC presents a strongly bullish case for Bitcoin’s (BTC) future value. The group projects that Bitcoin’s network capitalization will rise to $1-$5 trillion over the next five to ten years. The asset manager argues that Bitcoin offers one of the most attractive risk to reward ratios and should be included in well-diversified portfolios.
However, Blockstream CEO Adam Back believes that the estimation is “conservative” and Back suggested that Bitcoin could rally to a “$1 trillion market cap within 2 years” or probably sooner, implying that each Bitcoin will be worth $50,000.
Daily cryptocurrency market performance. Source: Coin360
Other than buying and holding Bitcoin for the long-term, some aggressive traders add leverage through Bitcoin options as it allows them an opportunity to lock in greater gains with a fixed risk if proven correct.
As more institutional investors enter the crypto space, the liquidity in the options market is likely to increase further. The Bitcoin options open interest has been increasing over the past few months, and it hit an all-time high of $2.14 billion on Sep. 24, which shows increasing participation from traders.
While analysts have painted a rosy long-term picture for Bitcoin, what does the short-term project? Can the crypto markets resume their up-move, or will higher levels attract selling by the bears?
Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin is currently trading inside a symmetrical triangle, which suggests that both the bulls and the bears are not clear about the next directional move. The big question is when will the breakout happen and which direction will it take.
BTC/USD daily chart. Source: TradingView
The BTC/USD pair has reached about three-fourths of the distance from the base of the triangle to the apex. Ideally, a breakout