Bitcoin Price Charts Suggest a Great Breakout Over a Year
This week, if Bitcoin (BTC) finish over $9,200, it would be an incredibly bullish sign. Also, it might be the biggest since the 2017 bull runs for the coming weeks and months.
The price of the most famous cryptocurrency by market capitalization will likely explode in the following week as long as the weekly candle opens above $9,200. And this would hint the end of a 46-week descending channel that BTC/USD has been into since it almost tapped $14,000 in the summer of 2019.
For the weekly view, the Bitcoin price is recently trading at around $9,500. It nearly looked inevitable that closing above $9,200 was a sure thing. However, there are no exact results when it comes to Bitcoin.
With the renewed post-halving retail interest, it definitely looks possible.
This is especially so since J.K. Rowling, author of Harry Potter, recently tweeted, asking for anyone to tell her more about Bitcoin. As a result, this might ignite renewed public interest in BTC. But if crypto twitter didn’t blow it by acting like baboons with cringeworthy feedbacks that no one found funny, the chances of this happening would be much higher.
Then, on the daily Bitcoin chart, the last resistance on the descending channel flipped to support. And with the use of the Fibonacci retracement tool, it gives a slight glimpse of where BTC will go next.
Currently, the price is sitting under .618, putting the next immediate moves either going to the upside around $11,600 (.786) or the downside around $8,790.
A move towards the downside is always a possibility. If it occurs in the week ahead, it means that the daily and weekly support has failed—a not-so-good sign for Bitcoin.
As the charts mostly look bullish on higher time frames, several indicators on lower time frames are beginning to provide signs of weakness. The moving average convergence divergence (MACD) indicator, saw a bearish cross. And despite nearly crossing bullish some days later, it has since returned to a downward trajectory.
While the weekly MACD remains very bullish, investors must not feel worried in the medium term. But for the short term, it seems like a small pullback might happen as people rush to take pre-10K level profits.
Aside from that, the RSI seems equally bearish on the daily chart as it’s approaching overbought territory. But remember that during 2017, the RSI often shows as overbought, and it just kept going.
With that, in the weekly chart, it is not even there, hinting that while a small pullback is possible, overall, it’s looking good for Bitcoin’s price in the medium term.
One more key metric that has proven useful in assessing the future price of BTC is the Bitcoin mining difficulty. As of now, it is starting to drop and reduce by more than 2% next week.
Nonetheless, with the halving done, more adjustments to the downside will likely happen since mining is currently no longer profitable. Despite that, there has been a boost in hash rate, topping out an average of 115 EH/s, which is an all-time high for BTC.
Before during the time, the hash rate is mounting, the price always follows. And as this number further explodes, it looks like the Bitcoin price will follow suit.
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