(GBTC), (ETHE) – Bitcoin rally likely to peak in coming weeks, says technical analyst

The Bitcoin (BTC) recovery appears to be heading for a break in early January, according to Newton Advisors President Mark Newton.

What happened: The vertex cryptocurrency still looks “optimistic on a medium-term basis”, given that it has just reached new highs, Newton told CNBC based on graph analysis.

“In the short term, my cycle compound shows our peak in early January,” said the analyst.

Basing his analysis on another chart, which uses three different Bitcoin cycles, Newton said: “All those years in which we had a stellar fourth quarter, we reversed the trend in late December, early January and actually fell” .

“I think there will be some opportunity to buy falls in the first quarter of next year,” said Newton.

Why it matters: Newton is bought in several cryptocurrencies and has revealed that he intended to sell his positions in the next “one or two weeks”.

Comparing investors with institutions, Newton noted that with “SPACs now, you can make money at 10, 15, 20% a day”.

“I just don’t think investors have much of an appetite for cryptography, while institutions are certainly moving in that direction.”

See too: MicroStrategy now holds 70,470 bitcoins after spending $ 1.1 billion in 2020

Cryptocurrency markets are on the rise, with BTC increasing almost 36.7% since the beginning of the month and 273.22% in the accumulated result for the year. The cryptocurrency reached its highest record of $ 28,288.84 on December 27.

Ethereum (ETH) grew 16.78% since the beginning of December and 451.79% in the accumulated result for the year.

Grayscale Bitcoin Trust (OTC: GBTC) and Grayscale Ethereum Trust (OTC: ETHE) closed 11.33% and 4.32% above, at $ 30.45 and $ 16.90 on Monday, respectively.

At the time of publication, Bitcoin was traded 1.26% lower at $ 26,845.73 and Ethereum was traded 1.06% higher at $ 715.97.