Bitcoin Price Update 07/27/2021
Down to 10K? or up to 100K?
Bitcoin has been on a constant growth since last year’s March crash to reach a new all time high in April 2021 at around 65,000 USD. Then, after the recent correction in May, price dropped to 29,000 USD.
Now, is this the end of Bitcoin’s Bullrun? Is this a similar scenario to the long term bearish trend we had back in 2018 that lasted for 3 years? Of course not! And in this article I will be going through Bitcoin Technical Analysis on several time frames for more confirmation on the overall trend in the short and long terms.
Let’s start with small time frames. Hourly chart seems like a good start. As you can see in the chart below, price has been consolidating around the 30,000 mark since May. We have formed what resembles a triple bottom formation which indicates a strong price reversal. We can also observe a squeeze bullish pattern that got broken recently. I expect the price to continue surging past the strong resistance at 41,000 USD towards 46,000 USD which is the minimum price target for the bullish squeeze formation. In case price decides to drop from this level, it has to maintain the 0.618 Fibonacci retracement level otherwise it will go more down.
BTCUSD - 1H Chart (Click to View)
If we zoom out of the chart to higher time frames, on the 12 hours chart, we can see that Bitcoin has been forming a massive rising channel since 2019. In the recent price correction, it touched the 50% retracement level (Mid channel line) and found support, and is now surging upwards to resume its macro-uptrend. Notice that volume was decreasing while price was dropping since May which indicates that the bears are losing control and trend is gaining some bullish momentum. The 50% retracement is a key level that Bitcoin has to maintain to stay bullish otherwise it will drop to 10,000 USD which is unlikely. In my opinion I expect Bitcoin to surge past its previous all time high to go near the 100K USD mark before the end of 2021.
BTCUSD - 12H Chart (Click to View)
Bullish divergence on the MACD indicator can be observed on the daily chart. The Ichimoku cloud area is reflecting and turning bullish. Price will have to stay above the cloud area to establish a strong support area before taking off to all time high.
BTCUSD - 1D Chart (Click to View)
Now, on the macro scale on the weekly chart, Bitcoin price has stayed above the 200 Moving Average line since 2015. In fact, on every attempt price tries to move down to form a death cross price goes up to nullify it and to resume its bullish trend. On the recent price drop, Bitcoin found strong support on the 50 Moving Average and is ready to go up again. Looking at MACD, we can see that it went down to the 0 line and now is ready to reflect and continue going upwards.
BTCUSD - 1W Chart (Click to View)
Based on all previous charts, I expect Bitcoin to surge past its all time high at 65,000 USD towards 100,000 USD and more in the near future.
Phantom Puppeteer is not a registered investment advisor, legal advisor, tax advisor, or broker / dealer. All investment / financial opinions expressed in any-and-all posts on this page, including screenshots & captions, are from the personal research and experience of the owner, Phantom Puppeteer, and are intended to be interpreted as educational material only. Although best efforts are made to ensure that all financial charts and commentary are as up-to-date as possible, there may be times where price moves beyond key levels before the chart can be posted. Alas, this is part of the fast-paced financial sector and cannot be avoided. Also, occasionally unintended errors and/or misprints may occur.
This was interesting to read.
Those charts you posted were informative too. Nice stuff putting those together. I'm ready for more if this.
Continuation of the bull run in following year strongly believable. Most of the indicators and analysts point out the way upwards.
Bitcoin refreshed our hope previous week. Even though if it would try going down several times, we know that there will be resistance.
In my opinion, we will Bitcoin reach six decimals within 1-2 years.
Thank you for your analysis Phantom, hope you will continue to be a writer!