- Todd Gordon, founder of TradingAnalysis.com, doesn’t see a price resistance for Bitcoin until $170,000
- Gordon cited the increasing interest of institutions and corporations in Bitcoin
- Gold price, however, has stalled
As Bitcoin moves past $52,000, there appears to be no sign of stopping the current bull run. According to Todd Gordon, the founder of TradingAnalysis.com, the trend will continue for the foreseeable future.
Gordon cited the increasing number of corporations and institutional investors coming into the market.
“I think the sky is the limit. I don’t want to be overly bullish, but just simple technical analysis, you don’t see resistance till about $170,000,” he told CNBC.
Bitcoin has been in unchartered territory ever since it broke past the three-year psychological resistance of $20,000 in December. Instead of staying in that range, Bitcoin proceeded to break past $30,000, $40,000, and most recently, $50,000.
At the current price point, Bitcoin’s market cap is around $960 billion. Comparing it to gold, whose market cap is $10.5 trillion, Gordon said he thinks there’s “a lot more room to go” for Bitcoin.
Gold’s rally has stalled after increasing to just below $2,080 in August 2020. Since then, the shiny metal traded sideways and is currently trading at around $1,781.
According to Quint Tatro of Joule Financial, there’s still upside to gold, although he admitted it has been very very difficult to be in a long position on the asset.
“It has risen from $1,100 to $1,900 within 2019 and 2020, and then is pulling back, so we’re still a buyer here of the weakness in gold, as hard as it is,” Tatro told CNBC.
Bitcoin has been called the digital version of gold, and both assets are considered a hedge against inflation and economic uncertainty. What separates them is the market they attract, with the former appealing more to millennials and a generally younger audience.
Many on the institutional side have begun putting Bitcoin in their portfolio as well. These include the likes of MassMutual, Guggenheim Investments and SkyBridge Capital.
Corporations are coming into Bitcoin too. Most recently, Tesla noted in a filing with the Securities and Exchange Commission that it has purchased $1.5 billion worth of Bitcoin.
Following Tesla’s lead, pundits, including Ark Invest CEO Cathie Wood, think other corporations will follow. If that happens, the price of Bitcoin might eclipse that of Gordon’s prediction. Wood predicted a value of $400,000 per BTC if more S&P companies will put Bitcoin into their reserves.