Before I start the analysis, I want to say that I personally believe that Bitcoin for 100 000 USD by the end of the year is more than possible. To support this statement, here are my ideas. First of all, traditional markets are in relatively good shape and my followers know that I believe that the good condition of tradition markets is one of the main reasons for crypto runs. Thus, if the traditional markets are stable, I think crypto can go higher. Well and during these days we can see that S&P 500 is attacking its ATH and NASDAQ has even reached it this week. If these markets can continue rising, I see no reason why crypto would not.
I also think that media and press have a role in what´s coming. Press loves hot stories and breaking news and this can influence newcomers to come to join this space. This can increase the inflow of the capital into the cryptocurrencies, leading to 100 000 dollars.
But what does the chart say?
Right now we are in the price discovery stage. To put it simply, this means that after any financial asset reaches its ATH, new rise can be expected to the areas, where it has not been before. This is usually supported by the press, because ATH is exactly the type of “hot story” that I mentioned before. This can also lead to lurking in the newcomers, who might have the feeling that their ship has sailed and they need to invest right now to make some money. This is obviously not true.
For the middle term I see 69 583 USD as one of the key levels, with 78 830 USD as the next one. If everything goes as planned, these two levels can be expected in the coming weeks.
Longer term outlook on Bitcoin, Source: Authors´ analysis
Short term uncertainty?
While looking more into the future seems like an easy task as we should continue with the bull market, the more short term analysis is a bit messy. Bitcoin is still safely about the trendline. This is the same trendline that pushed us above the ATH levels. Yet, if at any point the trendline is broken down, we can see panic and probably a more significant selloff. It is however very plausible that this selloff would be met with a sharp recovery.
Currently I am looking at 4H chart and the MA21 and whether we push further away from the trendline. In the short term we can also seen the price falling, yet, I would not worry about this for the longer time frame.
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