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Bitcoin

Bitcoin Will Move Like a “Bulldozer” Once It Gains Momentum, Claims Analyst

Published

3 Monaten ago

on



  • Bitcoin’s price appears to have entered yet another consolidation phase as it trades between $11,400 and $11,600
  • Its present lack of momentum comes close on the heels of the strong move higher that it posted last week
  • The resistance above its current price level is quite intense, and this may mark an attempt from bulls to garner greater buy-side support
  • Where the market trends in the mid-term will likely depend largely on whether Bitcoin’s consolidation phase results in a breakout or a breakdown
  • One analyst believes that Bitcoin will move like a “bulldozer” once it can determine which direction it wants to trend next

Bitcoin and the entire cryptocurrency market have lacked momentum throughout the past few days.

This consolidation has come about closely following the series of strong upwards movements seen just a few days ago that helped end its previous consolidation phase and push it past the resistance it faced between $11,000 and $11,200.

One analyst does believe that the next big movement that BTC makes will provide it with lasting directionality.

He even notes that the benchmark cryptocurrency will move like a “bulldozer” once this next trend-defining move is made.

Bitcoin Consolidates Around $11,400 as Buyers and Sellers Reach an Impasse

At the time of writing, Bitcoin is trading down marginally at its current price of $11,410. This is around where it has been trading throughout the past few days.

Its inability to garner any momentum has come due to the intense selling pressure that sits around $11,600.

Each attempt to move past this level has resulted in strong rejections, which indicates that a break above this level would hold some serious technical significance.

The lower-$11,000 region does seem to hold some support for Bitcoin, and it will require some serious selling pressure for it to be broken below.

Analyst: BTC Likely to See a “Bulldozer” Move Once It Gains Momentum 

One analyst explained that the next movement made by Bitcoin could be critical for understanding its near-term trend.

He pointed to the ongoing volume compression seen by the crypto, noting that it indicates a massive move is on the horizon.

“BTC: 2nd major volume compression underway this year… Watch out for the bulldozer when this baby picks a direction,” he said.

Image Courtesy of Josh Olszewicz. Chart via TradingView.

The coming few days and weeks should offer analysts and investors insights into Bitcoin’s near-term outlook.

Featured image from Unsplash.
Charts from TradingView.





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Bitcoin

‘Bullish year ahead’ — Bitcoin primed for Q1 2021 gains, strength index suggests

Published

21 Minuten ago

on

Dezember 29, 2020

By


The monthly relative strength index (RSI) of Bitcoin (BTC) shows the dominant cryptocurrency is primed for another rally.

Is 2021 an ideal time for a Bitcoin rally?

The RSI is a momentum indicator that measures whether an asset is overbought or oversold. When the RSI surpasses 75, it signals the asset is overbought, and when it drops below 30, it means the asset is oversold.

A pseudonymous trader known as “Crypto Capo” noted that the monthly RSI of Bitcoin is set to close above 80. Historically, when this has happened, BTC has saw a strong rally afterward.

Although the monthly RSI of Bitcoin is above 80, which is technically oversold, BTC’s RSI tends to become oversold for prolonged periods during a bull cycle.

The monthly RSI of Bitcoin. Source: Crypto Capo

Hence, traders often refer to an oversold RSI on a high time frame chart, like the monthly candle chart, to forecast an extended rally in the short term to medium term. The trader said:

“Monthly candle is about to close above 80. When this happens, bullish trend continues, with an avg. return of 1010.87%. Each cycle is shorter.”

However, the trader emphasized that one indicator cannot accurately predict the price cycle of Bitcoin. Crypto Capo explained that the combination of a few indicators could serve as guidance for the future. He wrote:

“You cannot base a prediction on an indicator. What we do is combining several methods to have a guideline for the future, to see what is more likely. But in the end, we adapt to what the price does in the present.”

“Bullish year ahead”

Traders have differing perspectives on where Bitcoin is headed in 2021, but most traders remain overwhelmingly bullish.

Cointelegraph Markets analyst Michael van de Poppe said he anticipates Bitcoin to reach $65,000 to $85,000 by next year’s end. He stated:

“I’ve got to revise my view on the potential level of $BTC at the end of 2021. Through this recent surge, I’m expecting it to be between $65,000-85,000 at the end of 2021. Bullish year ahead.”

Meanwhile, the options market is pricing in a 22% chance of Bitcoin achieving $120,000 by next year, which could also serve as a potential guideline on where BTC is heading in 2021.

In the short-term, however, some traders are cautious in entering leveraged positions. A pseudonymous trader known as “TheBoot” said the ideal scenario is to wait for Bitcoin to consolidate at $25,000 or enter after the next price upsurge. The trader explained:

“No rush to enter leveraged trades on $btc right here imo. Best would be to wait and long low 25k or even mid 24k. Alternatively, wait for the next leg up and then a dip from there.”

Cointelegraph previously reported that whales have been buying Bitcoin more aggressively since Christmas, which could buoy the mid-term bull case for BTC entering into 2021.