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Can Bitcoin Hit New 2020 Highs With Paul Tudor Jones on Board?

Bitcoin has catalysts and now investors want to know if it can maintain momentum. The cryptocurrency is working on eight straight weeks of gains.

Bitcoin has been resurgent lately, climbing roughly 12% so far this week.

The move adds to last week’s 16.3% jump, while bitcoin prices have risen for eight straight weeks.

The cryptocurrency bottomed in early March, a few weeks ahead of the stock market, giving investors a hint that perhaps bitcoin had fallen too far, too fast. Indeed, the assets has been surging over the past two months, now up about 150%.

The rally comes ahead of next week’s halving, which was described earlier on TheStreet:

“In its simplest form, bitcoin halving reduces the amount of tokens miners - the data-hogging computer programmers that validate new transactions and add to the ever-increasing blockchain -- receive for each new 'win' from 12.5 to 6.25 on May 12.”

Trading Bitcoin Prices

Daily chart of Bitcoin.

Daily chart of Bitcoin.

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Bitcoin caught a big boost earlier this week on comments from legendary trader Paul Tudor Jones. He argued that bitcoin looks like gold in the 1970s and he sees it being a reasonable hedge against inflation.

Jones said, “the best profit-maximizing strategy is to own the fastest horse ... if I am forced to forecast, my bet is it will be bitcoin."

As of this writing, bitcoin prices are hovering just below $10,000 per share. The last few times bitcoin went through a halving, shares ultimately gained in response. With one of Wall Street’s most well-known traders involved, can the cryptocurrency maintain momentum?

Aside from the psychological significance, a move over $10,000 could trigger a larger rally up toward the 2020 highs near $10,500. At this point, this area seems like a magnet for the bulls.

To get there, bitcoin will face the 61.8% retracement for the 52-week range at $10,136. Above $10,500 could put the 78.6% retracement in play at $11,804.

Should bitcoin prices retreat rather than break out, look for support to come into play near the 10-day moving average. Below that mark and the $8,000 area should be significant support. There, bitcoin will find its 100-day and 200-day moving averages.

Just keep in mind, this is a very volatile asset, and big moves can be expected in both directions. While bitcoin may need a break after eight straight weeks of gains, new 2020 highs can’t be ruled out.