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Although still a work in progress, Bitcoin (BTC) price has created a bullish chart pattern that could potentially take the worldâs largest digital coin to above $12,000 in the coming days. Elsewhere, a former Goldman Sachs executive believes BTC could trade at $1 million in 5 years.Â
Fundamental analysis: Bold prediction
A former hedge-fund manager at Goldman Sachs said Bitcoin price could reach as much as $1 million in 5 years. Raoul Pal, the former Goldman Sachs hedge-fund manager who founded Real Vision, said the price of bitcoin could hit $1 million in five years.
Raoul Pal, the founder of the media company Real Vision said such a surge in BTC price could happen if a number of institutional funds inject âan enormousâ amount of money into the cryptocurrency.
The worldâs largest cryptocurrency had a great year and advanced around 40% since the start of the year, hitting $11,387 yesterday. Bitcoinâs current market cap is standing at around $200 billion.
âJust from what I know from all of the institutions, all of the people I speak to, there is an enormous wall of money coming into this,â Pal said in an interview with Stansberry Research.Â
âItâs an enormous wall of money â just the pipes arenât there to allow people to do it yet, and thatâs coming. But itâs on everybodyâs radar screen, and thereâs a lot of smart people working on it.â
He also said that the global economy is nearing the âinsolvency phaseâ as the recovery process from coronavirus is progressing much slower than expected. Â
âThe economyâs not going to recover for a lot longer than we expect,â Pal argued. He emphasized the lack of stimulus and pointed to upcoming challenges all around the world.Â
âAnd businesses donât have enough cash flow. Theyâre closing in droves. And thatâs what I called the insolvency phase,â he said.
Pal said the only efficient response to the current crisis âis more from the central banks, so thatâs why I started to buy more and more bitcoin.â
Until recently, Palâs portfolio was quite diversified, with his assets being evenly distributed among dollars, gold, equities, and bitcoin, Cambone said. According to him, he now holds more than 50% in Bitcoin.Â
Technical analysis: Bullish pennant in the making
Bitcoin (BTC) price trades about 1.5% lower today as it stays mostly unchanged on the week. This is a positive for the bulls, who managed to secure gains of 6.59% last week.Â
Bitcoin â a potential bull pennant (TradingView)
The latest consolidation is taking place in the form of a pennant, with a break above $11,600 activating the bullish pennant chart formation. In this case, the Bitcoin investors will be targeting a trip to $12,400.
Summary
Raoul Pal, founder of Real Vision and previous hedge fund manager at Goldman Sachs said the price of Bitcoin could hit up to $1 million over the next five years. Separately, Bitcoin price has created a bullish pennant that aims for $12,400 in the coming days.
The post Bitcoin (BTC) price could hit $12,400 next week on this chart pattern appeared first on Invezz.
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