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Bitcoin Would Rocket to $20k if It Were to Breakout Today

Published

2 Monaten ago

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  • Bitcoin’s price has been struggling to gain any serious momentum over the past few days
  • This has come about due to the stock market’s sideways trading, which is still holding heavy influence over that of BTC
  • The cryptocurrency is facing some heightened selling pressure due to bearish developments within the market, but bulls have been absorbing the heavy influx of sell orders
  • Where the entire market trends next may depend largely on Bitcoin
  • One analyst is noting that he believes it is coiled up to make a big move in the near-term
  • He even notes that this may be the “calm before the storm” and that a serious upside movement could be right around the corner

Bitcoin and the entire cryptocurrency market are currently trading sideways. Both bears and bulls have been struggling to take control of the market’s near-term outlook, which may be due to the stock market’s lack of momentum.

One analyst is noting that Bitcoin could currently be caught within the “calm before the storm” – a sentiment that indicates a big move is coming.

The same analyst further stated that he believes Bitcoin would rocket straight up towards $20,000 if it were to breakout today.

Bitcoin Struggles to Gain Momentum as Entire Market Consolidates

At the time of writing, Bitcoin is trading up marginally at its current price of $11,350. This is around the price at which it has been trading throughout the past few days.

Despite the stock market showing signs of weakness and altcoins drifting lower, Bitcoin still has significant buying pressure due to the bullish developments surrounding its adoption as a reserve asset amongst major corporations.

As it continues consolidating, most major altcoins have been slowly drifting lower as investors try to de-risk their portfolios.

Until BTC pushes higher, this trend will likely persist in the near-term.

BTC Would Rocket to Its All-Time Highs if It Broke Out Now; Claims Analyst 

While sharing his thoughts on Bitcoin’s near-term outlook, one analyst explained that Bitcoin would likely surge towards $20,000 within the next 3 months if it were to breakout now.

“Calm before the storm. If BTC was to breakout today, it would most probably reach its previous ATH of $20k within 3 months,” he said.

Image Courtesy of Mohit Sorout. Source: BTCUSD on TradingView.

Unless a phase 2 stimulus package boosts the stock market and allows Bitcoin to explode higher, it is unlikely that BTC will be able to breakout until after the elections.

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

9 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.