Citibank Reports Positive Prediction for Bitcoin

An idea that has been getting thrown around recently is that Bitcoin (BTC) could hit a fresh year-to-date (YTD) high on the back of the upcoming US Presidential Election.

This idea was sponsored by a recent quarterly commodity outlook published by American banking behemoth, Citigroup. The firm based its predictions on gold (XAU/USD) and its possible price dynamics ahead of the election season in November. It highlighted that gold could record a new YTD high despite its current bearishness.

Meanwhile, Bitcoin, which has shared a strong correlation with gold since March, tumbled through this week amid similar geopolitical triggers. The benchmark cryptocurrency touched $10,100 briefly following the Federal Reserve Chair Jerome Powell’s announcement of the inability of the bank to support the US economy in the absence of a second Coronavirus stimulus package. Many analysts have predicted that the proposed stimulus measures may not be approved until after the elections.

This delay has caused a lot of investors to flee from safer assets like gold and Bitcoin, to the US dollar (DXY). But for Citibank, this price dynamic in gold and Bitcoin isn’t going to last.

Meanwhile, Tyler Winklevoss, co-founder of the Gemini exchange, has advised that people should go long on Bitcoin to save their capital from the incoming crisis.

Key BTC Levels to Watch

Bitcoin continues to trade under a directionless sentiment as investors look on in anticipation. Based on our 4-hour chart, we can observe that BTC has made some attempts at the upside recently, but remains strongly opposed by the top of our pivot point at $10,800 and the prevailing descending trendline.

BTC has to defeat both indicators in one swipe and break strongly above $10,800 before any bullish recovery can take place. Subsequently, the next level to beat is the $11,200 resistance.

Total market capital: $342 billion

Bitcoin market capital: $198 billion

Bitcoin dominance: 57.8%

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