2021 May Be the Year of Fresh All-Time-Highs for Bitcoin: USD/BTC (BTC=X)

2021 May Be the Year of Fresh All-Time-Highs for Bitcoin: USD/BTC (BTC=X)

2021 May Be the Year of Fresh All-Time-Highs for Bitcoin: USD/BTC (BTC=X)

At the time of writing, Bitcoin is trading up over 2% at its current price of $6,050, up significantly from its weekly lows of $5,500.

Over the past month, BTC has incurred significant upwards momentum that is showing few signs of faltering, as it has continuously been able to climb higher, even in the face of fairly significant developments that would typically be deemed bearish.

The upwards momentum first began in early-April when Bitcoin was trading in the low-$4,000 region, before it incurred significant buying pressure that boosted its price up to $5,400, at which point it began trading sideways before breaking above $6,000 late-yesterday.

Mike Novogratz, the CEO of Galaxy Digital and a former Goldman Sachs partner, recently spoke to CNN during the SALT conference Las Vegas, explaining that he expects Bitcoin’s price to triple by 2021, which would lead it towards its previously established all-time-highs.

Novogratz added that “Out of the rubble, bitcoin has popped back up,” referencing its 2018 lows in the low-$3,000 region, further noting that it would take something like a sudden shift in regulation or a devastating crypto exchange hack to “shatter this newfound confidence.”

BTC May Struggle Around $6,000 Before Surging Higher

Novogratz recently laid out a slightly more technical case for Bitcoin in an interview with Bloomberg, explaining that he expects BTC to “struggle around $6,000” before surging significantly higher.

Although it remains unclear as to whether or not $6,000 will be an easy level to decisively break above, it is important to note that the low-$6,000 region is where BTC traded sideways at for nearly two months before breaking down in mid-November to lows of $3,200.

Because BTC has been able to return to this price level, Novogratz explained that he is more confident about the cryptocurrency now than he has ever been in his career.

“I feel better about Bitcoin today than I have at any time in my career,” he bullishly said.

As Bitcoin’s price action continues to unfold and it grows clearer as to whether or not the crypto is able to decisively form support at the $6,000 level, traders and analysts alike will likely garner greater insight into whether or not the markets are truly able to begin their journey back towards their all-time-highs, or if further consolidation is imminent.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 5,065.09.

The projected upper bound is: 6,795.02.

The projected lower bound is: 5,787.57.

The projected closing price is: 6,291.29.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 34 white candles and 16 black candles for a net of 18 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 91.7905. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 4 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 76.75. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 16 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 149.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 4 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 6 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed up 166.150 at 6,245.900. Volume was 76% below average (consolidating) and Bollinger Bands were 59% wider than normal.

Open High Low Close Volume___
6,081.8006,300.9006,068.5306,245.900 16,368

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 5,756.55 5,051.51 4,410.93
Volatility: 31 66 70
Volume: 52,356 71,555 74,382

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FOREX BTC= is currently 41.6% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of BTC= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on BTC= and have had this outlook for the last 7 periods. Our momentum oscillator is currently indicating that BTC= is currently in an overbought condition.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH