Yesterday bitcoin's price kept its uptrend, and today BTC/USD had another massive boost and is now trading well above $50,000. In the past 24 hours, BTC/USD increased by almost 6% and was trading around $54,000 according to CoinGecko, at the time of this writing.
We're quite bullish on the short-term price of bitcoin since it is now holding above $50,000. Not only is this price range a key level for bitcoin's support, but also $52,000, as it is the next immediate support level for bitcoin. If the rally continues, we think BTC/USD will break $55,000 shortly.
If we look at the Volume Profile Visible Range (VPVR) on the left, we see significant buying support between $48,000 and $50,000.
In terms of news, a new Bitcoin ETF was born in Canada, and behind it is the infamous Mike Novogratz, who tweeted that
"ETFs are a tipping point for bitcoin adoption. We're proud to serve as the sub-advisor for the CI Galaxy Bitcoin ETF (BTCX), which just launched on the TSX as the lowest fee bitcoin ETF in the world."
This is extremely bullish news as it shows institutions are keen on purchasing bitcoin and add it to their balance sheets.
In summary, bitcoin's price traded within the predicted range (blue), and as we expected, found strong support above $50,000. Therefore, we expect the short-term price to break $60,000 soon.
We remain bullish on BTC/USD as long as:
- BTC/USD remains above its 20-day MMA (red), 50-day MMA (green), and 200-day MMA
(blue). - BTC/USD doesn't drop below $50,000.
- BTC/USD daily volume goes above its 21-day Moving Average soon.
Traders’ Food For Thoughts
Today’s first tweet of the day comes from Lex Moskovski, whose Twitter describes him as the CEO/CIO at Moskovski Capital.
Moskovski shared a chart of the “Total Transfer Volume From Exchanges - Coinbase (BTC)” that contained some key insight to the recent price appreciation.
As Moskovski wrote,
“Another huge batch of 11,554 #Bitcoin has left Coinbase. That happened just before the recent surge in price.”
Essentially, Moskovski believes that less bitcoin available means a higher probability of bitcoin’s price appreciating. This comes quite in line with what we wrote yesterday regarding the Law of Supply and Demand. When there is less quantity of an asset available at a market, and demand stays the same or increases, the asset's price generally goes up.
Therefore, as long as new institutional investors keep joining the space, which seems to be the case, there is little chance the uptrend reverses.
The next post comes from Preston Pysh, co-founder of The Investor’s Podcast Network.
Pysh shares the daily bitcoin’s price chart in his post, and he adds the Moving Average Convergence Divergence (MACD) indicator at the bottom. According to Investopedia, the MACD
“is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. (...) MACD triggers technical signals when it crosses above (to buy) or below (to sell) its signal line.”
What the daily MACD trend showed, according to Pysh, is an extremely bullish pattern. We interpret it as the sell-off being complete and the price being ready to start appreciating considerably.
However, to have full confidence that a new rally has begun, we should wait until the daily price closes above the previous high, at around $58,000.
The next tweet comes from The Wolf Of All Streets (Scott Melker), whose Twitter describes him as an investor, podcaster, and author of The Wolf Den Newsletter.
The Wolf Of All Streets' post greatly complements the previous Tweet from Pysh. The analyst shared a 4-H chart of bitcoin's price, and he wrote that "Local range highs broken and retested as support. The correction "should" be over with fresh highs incoming."
Hence, just like Pysh and Moskovski, The Wolf Of All Streets is quite bullish on the short-term bitcoin's price. In our opinion, these traders are correct in their analysis and investors and traders should expect a continuation of the rally.
The last post of the day comes from legendary Max Keiser, whose Twitter profile describes him as a "Bitcoin Pioneer" and co-founder of Heisenberg Capital.
In his tweet, Keiser makes two different predictions, one short-term related and the other focused on the long-term. The bitcoin OG wrote "$77,000 short term in play. $220,000 in 2021 in play", which essentially shows how bullish he is on bitcoin's price for the next few months.
Nevertheless, we highly doubt bitcoin moves straight to $77,000 without a minor 10% correction in-between, and it's even more unlikely that it reaches $220,000 without a significant +30% correction.
Hence, although we're incredibly bullish on bitcoin's short-term price, we also think there will be plenty of opportunities for investors and traders to accumulate more BTC or enter a long position.
Corrections are not only likely to happen but welcomed.
Bitcoin Price Prediction
Early this week, bitcoin's price found strong support above $50,000, and since yesterday it has moved another 6%. At the time of this writing, bitcoin's price was trading close to $55,000.
Due to the cryptocurrency trading within the predicted range, we think the chances for bitcoin's price to reach $60,000 are incredibly high. Buyers continue to flock into the crypto space, less bitcoin is now available at exchanges, and more institutional investors keep accumulating bitcoin; all these factors drive BTC/USD up towards a new all-time high.
How do we think the price will trade today and through the rest of the week? As shown in the above chart, we believe that bitcoin could top around $60,000 in the next few days, assuming buyers continue to enter the space.
On the other hand, we don't expect the cryptocurrency to drop much below $50,000. If it falls, then $48,000 will most likely be the next healthy level of support for bitcoin's price.
To finalize, the VPVR shows a high number of buy orders at $50,000, and then again around $48,000.
Pay attention to sudden price swings, as bitcoin's price still needs to reach its prior high to make us confident on a full continuation of the bull run. Conversely, if it breaks its current support around $50,000, that would be quite bearish for BTC/USD's foreseeable future.
Having that said, there's a high chance price will continue its uptrend.