Bitcoin Monster Rally - Price Analysis and Upcoming Trends

The mood on the crypto markets is better than it has been for a long time. All major currencies have been gaining for three weeks. The lead currency Bitcoin has now cleared an important hurdle. This is a strong sign for the medium-term development.

Bitcoin (BTC) continues its rally over the week and has now recaptured the GD200 at $45,118. This is a strong sign that the bulls have a firm grip on the wheel. This means that the price of one BTC has gained around 57 percent since July 21.

However, the strong rise now increases the risk of a setback. Although the price corrected by twelve percent at the turn of the month, it has already risen by a further 24 percent since then. Renewed profit-taking is thus becoming increasingly likely. Investors should pay particular attention to the psychologically important 47,000 dollar mark, where there is technical resistance. This once again increases the risk of profit-taking.

However, the overriding situation remains promising and the trend would be intact even after a double-digit correction. The first support is at 42,400 dollars. A bit lower, at $40,550, the GD20 is located as another support.

Cryptocurrencies have been in rally mode for three weeks and there is no end in sight. In the short term, however, profit-taking may also occur in bitcoin. However, the trend is strong and the price is now climbing back above the GD200 at $45,118. This is an important sign for a positive medium-term development, and the long-term perspective remains promising anyway.

Bitcoin: Here comes the next showdown

Bitcoin has confirmed the breakout from the medium-term sideways trend in recent days and also recaptured the $45,000 mark in the process. The chances of a continuation of the upward movement are good. It is these chart marks that matter now.

After the strong price gains of the past few days, the crypto market loses about one percent on Thursday morning on a 24-hour view. Bitcoin falls by around 1.5 percent and thus comes back somewhat from the local high of the previous day at 46,736 dollars - but can so far defend the chart support in the area of 45,000 dollars.

If a rebound succeeds from the current level, the dynamic upward movement can continue. Then the next key resistance at around 48,000 dollars will come into focus. During the sharp setback in May, there was an attempt to stabilize in this area.

A renewed breakout above this level would thus be its signal for a continuation of the upward movement and an attempt to reach the all-time high of mid-April at almost 65,000 dollars. However, it is questionable whether the jump above the resistance at $48,000 will work directly at the first attempt.

After the bitcoin price gained more than 60 percent at its peak within around three weeks and recaptured important chart marks in the process, a short-term consolidation would not be unusual. However, it would be important that the horizontal support and the 200-day line in the area of 45,000 dollars are not sustainably undercut. Otherwise, the next support zone is waiting in the area of 41,500 dollars.

The crypto market has regained the upper hand and is in a much better position than it was a few weeks ago. This attracts new interested parties, which should boost demand. Thanks to its role as a digital reserve currency and its deflationary character, bitcoin can particularly benefit from this. The speculative buy recommendation therefore still applies.

Bitcoin bull: At 100,000 dollars in 143 days - thanks to this signal

Bitcoin continues its dynamic upward movement and is trading five percent higher at around 45,700 dollars on a 24-hour view on Tuesday morning. However, the analysts at Fundstrat Global Advisors believe that much more is possible and have now reiterated their price target of 100,000 dollars by the end of the year. The reason for this is an important chart signal.

“Bitcoin has recaptured the 200-day line, now it is time to buy,” write the experts around Bitcoin bull Tom Lee in a recent study. The reason: when bitcoin trades above the long-term trend line, its future performance is many times stronger.

Calculations by Fundstrat analysts have shown that bitcoin has gained an average of 193 percent over a six-month period when it trades above the 200-day line. In contrast, when trading below it, the forward return over the same period averaged just over ten percent.

The simple bitcoin trading rule of the experts is therefore: “Buy when it is above the 200-day line.”

Strong: Bitcoin rises despite headwinds

Fundstrat founder Tom Lee also does not have a concrete explanation for the significant price increase of almost 60 percent in the last three months. But the fact is that it is rising despite all adversities - such as the legal and regulatory headwinds in China and the United States.

The U.S. Congress will soon vote on a new infrastructure program that includes taxing digital assets. Around 28 billion dollars the U.S. Treasury wants to collect with the controversial tax on profits from trading in Bitcoin and Co.

“And yet bitcoin is in rally mode,” Lee said. That, too, is a valuable insight, he adds. His recommendation is therefore very simple: “Go long Bitcoin and stocks related to the crypto market.”

Confidence is growing again

If bitcoin stays true to its historical pattern and gains 193 percent after the recent breakout above the 200-day line, it would cost around $134,000 in February. The fund start price target of $100,000 by the turn of the year would thus be absolutely in line.

Of course, this is a model calculation and there is no automatism that history will repeat itself this time. However, the impressive comeback in the chart and the continued strong fundamentals are reason enough to be bullish for bitcoin.

Invested investors therefore stay with it and let the profits run. Courageous newcomers can also take hold again after the recent buy signals and build up a long-term position as a speculative portfolio addition.

Bitcoin: New impetus from mega event with Dorsey, Musk and Wood?

On Wednesday, bitcoin recovered significantly from its weakness at the beginning of the week and regained the important 30,000-dollar mark. However, notable impulses have been scarce lately. However, a top-class panel discussion on Wednesday evening could change that.

What was planned as a relatively unspectacular industry event for companies and institutions interested in crypto has developed into a summit meeting of Bitcoin influencers: Ark Invest CEO Cathie Wood, Square CEO Jack Dorsey and Tesla boss Elon Musk will meet at the online event “The B Word” today, Wednesday.

The panel discussion is scheduled to begin at 8 p.m. German time and will be livestreamed on the event’s website. The official topic of the round is “Bitcoin As A Tool For Economic Empowerment,” but given the lineup, chances are good that other aspects surrounding Bitcoin will be brought up as well.

All eyes on Elon

All three CEOs are invested in Bitcoin themselves with their respective companies. However, due to the negative carbon footprint of Bitcoin mining, Musk had recently been rather critical and suspended payments with Bitcoin at Tesla again, at least temporarily. This change of heart was not well received by the market and contributed to the significant setback from the all-time high.

Musk’s participation in the event, which is organized by the Crypto Council for Innovation as an information event for institutional investors, was announced rather unconventionally via Twitter. It will now be exciting to see what he has to say on the subject - because in his tweets, the otherwise opinionated Tesla boss has been conspicuously restrained lately and has hardly spoken about Bitcoin or other cryptos.

In the run-up to the conference, the Bitcoin can extend the price gains. With a plus of more than six percent, it has now fully compensated for the losses from the beginning of the week and left the 30,000 mark clearly behind again. Long-term investors are betting on new impulses and a continuation of the rebound.

Bitcoin has rallied and analysts believe Joe Biden’s bill has not broken its trend

After the drop to $45,000, some say bitcoin could reach its steady state, while others say the digital currency could reach $100,000.

Bitcoin has rebounded from the drop it suffered following the passage of Joe Biden’s infrastructure bill, which establishes a regulatory and tax framework for cryptocurrencies. In recent hours, bitcoin has rebounded again to values near u$46,000 and analysts believe it may have reached its equilibrium price.

Bitcoin has been on the rise since July 20, after hitting a local low of $29,278. It created a higher floor on August 5 and resumed its rise thereafter. So far, it has managed to hit a high of $46,700 yesterday.

“It is approaching a very important resistance level between $46,800 and $47,800. Recovery from this level would indicate to a large extent that the trend remains bullish,”

However, none of the shadows hanging over the crypto space, such as new tax burdens and increased regulation, seem to bother the bulls in the least. The U.S. Senate on Tuesday gave the green light to the bipartisan Biden’s $1 trillion infrastructure plan, which will now go before the House of Representatives. The plan includes taxing cryptocurrency transactions, which would raise $28 billion over ten years for the US government.

But experts point out that, far from being negative, this news indicates that “cryptos” are held in high regard in Washington. “Cryptocurrencies are going to be an important source of tax revenue to fund infrastructure,” says Emilie Choi, president and COO of Coinbase’ in an interview with ‘Bloomberg TV. “It’s actually a very positive thing. It’s no longer a fringe phenomenon, it’s become a ‘mainstream’ phenomenon and it’s a long-term play.”

With most analysts and pundits determined to see the glass as half full, one can only hope that the catalysts for another rally to $100,000 are in place. For Tom Lee, an analyst at Fundstrat Global Advisors, it will be by the end of 2021. The firm’s co-founder and director of research recommends that investors follow a simple rule: If bitcoin is above its average price over the past 200 days - a measure of long-term momentum - it’s time to buy. The currency has broken through that barrier in recent days.

On the other hand, “if bitcoin were to match ethereum’s performance this year, the price would approach $100,000,” tweeted Mike McGlone, senior commodity strategist at Bloomberg Intelligence.