Disclaimer: The writer is not a Financial Advisor, and this article is not investment advice. The information is written for educational and entertainment purposes only. The writer owns only a fraction of a Bitcoin for experimental purposes. BTC markets are highly volatile and risky in nature. DYOR before making any investment decision, rather than listening to a stranger over the Internet.
It has been months since we posted BTC’s price analysis. However, we explained in our most recent analysis in Nov 2020 that the outlook on BTC is bullish. BTC was trending at $18,000 at that time and as of today, changing hands at around $57,000 after hitting an ATH of $64,895 on 14 Apr 2021 on Bitstamp. What a ride!
This ride was not smooth though. There were many ups and downs as well as more trust in BTC as an asset class. The best news so far IMO is Tesla Inc. buying $1.5 billion worth of bitcoins, an estimated 48,000 bitcoins. If someone is still doubting BTC, then they need to ask themselves this question: “Are they smarter than Elon Musk?”. Several other companies are making BTC a part of their treasuries or portfolios such as Meitu.
As of today, BTC still looks strong and more likely to continue the upward trend than starting a downward trend.
Now let’s dive into price analysis and see what is the outlook of BTC.
Monthly:
The monthly chart has become too parabolic to identify any potential support and resistance. There is not much to infer from this timeframe but that does not mean any weakness in BTC. So let’s switch to weekly TF.
Weekly:
From the weekly, it can be seen that BTC is ranging between around $55,000 and $60,000 with $50,000 acting as strong support at this stage. After running parabolic for several months, BTC is consolidating which is a good sign and a highlight of the continuation of the bullish uptrend. A BTC in an uptrend coupled with consolidating range and declining dominance is good for altcoins too. Several altcoins look strong against BTC such as SOL, RUNE, YFI, ETH, LTC, etc.
The potential support and resistance levels are highlighted in the chart. The overhead resistance is at $$58,250 and strong resistance is hovering at $60,000.
$55,850 is acting as good support so far on the weekly chart and $50,000 is strong support after this. Only a decisive break downwards of $50,000 i.e. a strong weekly close below this level, will send BTC to the next support which is at $45,000 followed by $38,850. A break below $50,000 has a low probability as compared to a break above $60,000 at this time unless a black swan event happens. A strong weekly close above $60,000 could send BTC to a new ATH.
Daily:
The daily chart highlights the potential support and resistances at a micro-level. All levels are highlighted in yellow. Once a support or resistance level is breached, it converts into a resistance or support level respectively. Daily TF also has $50,000 as a strong support area.
Conclusion:
BTC still is in an uptrend until proven otherwise. There are a lot of price predictions out there predicting $100,000, $150,000, $500,000 as the top of this cycle. However, it’s hard to say where BTC tops at this stage and we can best follow this bullish trend until there are clear signs of a trend reversal. On a side note, Cryptoriate has a price target of anywhere between $200,000 and $250,000 for this cycle.
Disclaimer: The writer is not a Financial Advisor, and this article is not investment advice. The information is written for educational and entertainment purposes only. The writer owns only a fraction of a Bitcoin for experimental purposes. BTC markets are highly volatile and risky in nature. DYOR before making any investment decision, rather than listening to a stranger over the Internet.
