Bitcoin is set to hit $12 000 before the end of the year if it remains above the $8 500 support this week, an expert predicted on Monday. Over the weekend, the world’s largest cryptocurrency value went up by 20%.
“Bitcoin has registered some impressive gains over the last 48 hours after being in a lull period in recent weeks,” deVere Group CEO Nigel Green said this week.
Devere Group is one of the world’s largest independent financial advisory organisations.
“As of now, it has defied the so-called ”Death Cross” – a bearish pattern that takes place when the 50-day moving average falls below the 200-day moving average;” Green explained.
“The $8 500 support has previously acted as a crucial support for Bitcoin. I believe that if Bitcoin bulls can keep the price above this over the next week, the world’s dominant cryptocurrency will experience a breakout and will hit $12 000 before the end of the year,” he pointed out.
The latest surge in Bitcoin has been triggered by Chinese President Xi, who called for the adoption of blockchain, according to Green.
Blockchain is the technology on which cryptocurrencies run – an important breakthrough for independent innovation of core technologies.
“This is a clear signal that the leader of the world’s second-largest economy is moving towards embracing the technology – in which Bitcoin plays a vital part – and therefore taken as a positive boost for the whole digital currencies sector,” Green said.
“Perhaps quite sensibly, investors could not ignore the comments and sentiment expressed by President Xi and reacted by increasing exposure to Bitcoin.”