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Current 2021 all-time highs are not on the radar for everyone as resistance, fresh market analysis shows.
MARKETS NEWS
Bitcoin (BTC) is “ready to rally” again as BTC price action flips bullish on crucial timeframes, trading platform Decentrader says.
In its latest market update on Oct. 29, the firm predicted incoming fresh upside for Bitcoin, which has languished below old all-time highs this week.
Despite sideways moves in BTC/USD keeping markets guessing, the odds are still on for gains to enter in the short term, analysts believe.
While the area around this year’s two highs — $63,900 and $67,100 — are the main focus of discussion, real friction might in fact only lie far into price discovery territory nearer $100,000.
“On a technical, market cycle, and on-chain basis, we continue to believe that the next major area of difficulty for $BTC will not hit until we approach $85,000 – $90,000,” the update forecasts.
This is due in part to a moving average crossover event involving the 128-day and 200-day trends, which has historically sparked “sustained” upside.
Closer to the present, Bitcoin’s three-day chart, which Decentrader holds to be an especially accurate price tool, is now bullish, contradicting the current bearish daily and neutral weekly setup.
This is one ingredient feeding into a probable channel for price action which could see Bitcoin hit $150,000 by the start of 2022.
BTC/USD chart with channel top target. Source: Decentrader
The status quo with the overall Bitcoin supply should help matter — exchange reserves continue to fall, indicating resolve to hold, rather than sell, among traders.
“Evidence continues to suggest that existing market participants remain bullish. One data point to support this is the continual draining of Bitcoin from exchanges as users select to put their Bitcoin into cold storage. The net impact of this is that short-term supply is reduced,” the update concluded about Bitcoin.
“Until this trend changes it will continue to put upward pressure on price as demand for Bitcoin has to accept higher prices amongst the limited supply available.”
Bitcoin exchange reserves chart. Source: Bybt
Also taking a broader look at the state of Bitcoin at the end of “Uptober” is asset manager ARK Invest.
Related: Don’t get bearish on Bitcoin just yet, says veteran trader who called 2018 crash
In the latest instalment of its dedicated guides released this week, the infamously bullish firm counted up the metrics to gauge how much overall upside BTC/USD has left.
The majority indicates, as Cointelegraph reported, that the bull run is far from over, despite some heading into territory which has historically signaled a cycle top.
“In our view, Bitcoin’s value is a function of its economic utility, while bitcoin’s value is a function of its supply and demand. Over the short- to medium-term, we believe investors should be able to assess buyer and seller behavior on Bitcoin and use relative-value metrics to manage bitcoin positions actively,” accompanying commentary read.
