The market is yet again in the green after the brilliant performance last week. Bitcoin is currently trading around $9,300, down from that week’s high at $10,600. In altcoins, Bitcoin Cash, Tron, Stellar, and VET are still registering gains.

According to analyst Benjamin Blunts, in the light of the excitement in the air, a breakout is imminent. But the flagship cryptocurrency, he said will move sideways for a bit before breaking down to $8,500 level. This correction is that will shoot us towards a new 2019 high.

seeing a lot of excitement in the air, breakout imminent posts, cup and handle this, bull flag that

i think we flag sideways for a bit before breaking down with the B wave as a triangle

interestingly the correction after the last bottom also took 4X longer then initial impulse pic.twitter.com/Wo1nnSLCse

— 🍄🌲Benjamin Blunts🌲🍄 (@SmartContracter) October 28, 2019

Bitcoin price as per Crypto analyst and trader Crypto Michael will surge to $20,000 by next year.

“The 2016 period and now are still comparable in which targeting the $17,000-$20,000 range prior to a halving is realistic,” he said.

The greens in the crypto market have been driven by President Xi Jinping’s speech where he said Beijing should speed up the development of the blockchain technology.

Crypto-to-crypto derivatives platform Amulet Managing Director Marouane Garcon is positive on China's endorsement.

“People know that his green light will cause a ripple effect across China,” Garcon said. “Having China onboard, in my opinion, is just as good, if not better, than having America onboard.”

Riding the Blockchain Hype Train

On Monday, blockchain-related stocks recorded significant gains, with Sinodata Co. and Insigma Technology Co. among over 60 tech shares surged by the daily limit in Shenzhen and Shanghai.

Pantronics Holdings which is planning to change its name to “Huobi technology” rallied 67% and selfie-app developer Meitu Inc. that has plans for an encrypted user-identification system surged 30%.

Xi said China will increase investment in this nascent field and high-level officials began their first major policy meeting since 2018.

“Most of these companies, especially those that are just beginning to state their connection with blockchain today, are trying to take advantage of the hype,” said Li Shiyu, fund manager at Guangdong Xiaoyu Investment Management Co. “It shows how much excitement can be triggered by something stressed as a priority by the top man himself.”

Investors are now pressuring other firms to jump on the blockchain hype. “Please proactively make expansion plans in blockchain to jump on state policies — doing so would be the best reward to investors,” reported Bloomberg one shareholder of development-store operator Hunan Friendship & Apollo Commercial Co.

As we reported, interest in Bitcoin has taken a jump on Chinese search engines. Chinese interest in the world’s leading cryptocurrency is still strong as can be seen on Weibo, Wechat and Baidu.

Chinese online interest in bitcoin (比特币) has remained high. This is good. Charts are for Weibo, Wechat and Baidu. pic.twitter.com/hg8O03ZYQX

— Alex Krüger (@krugermacro) October 29, 2019

The capital flow in the Chinese market will soon be seen moving into the crypto market, said Binance CEO Changpeng Zhao.

“Those gains in stock markets will spill over to crypto soon… Told ours guys to scale up system capacity, waiting,” he said.