Daily Overview
Today, bitcoin's price maintained its uptrend; however, it has been flat for most of the day and keeps trading around $57,200, according to CoinGecko, at the time of this writing.
A new record price is now imminent, and we think bitcoin can reach $60,000 in a matter of hours.
We hope we can all celebrate the weekend.
Additionally, If we look at the Volume Profile Visible Range (VPVR) on the left, we see there are not many sellers left and that bitcoin's price will soon be entering price discovery mode. Once this happens, we're sure volatility will increase, and bitcoin's price will enjoy a massive upswing.
In terms of news, Forbe's Enrique Dans wrote an extremely bullish piece today about the future adoption of bitcoin, and he concluded that
"To all intents and purposes, and particularly in the post-pandemic context, the bitcoin is a far more valuable asset to gold, silver, the dollar or the euro. The fact that many people, regrettably, have yet to understand."
Therefore, if bitcoin continues to grow on wealthy individuals as an easy way to escape inflation, that could mean an exponential rise in bitcoin's future price.
In summary, during this past week, bitcoin's price traded within the predicted range (blue), and as expected, broke $56,000. This is quite important for the short-term bitcoin's price as if the cryptocurrency finds support above this price range, that could mean a continuation of the rally.
We hope BTC/USD breaks its record price and goes above $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 $52,000.
- 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 Willy Woo, a crypto analyst whose Twitter profile describes him as an on-chain analyst.
Woo shared two charts, the first
"Bitcoin: UTXO Realized Price Distribution (URPD)" that, according to the analyst, shows "how many coins were bought at each price by current investors."
In our opinion, the number of people acquiring bitcoin above $50,000 is astonishing. Additionally, the chart above clearly shows a significantly growing number of orders above $55,000.
Woo also shared a second chart, below, that shows the
"BTC - Liquid Supply Change" in a continuation tweet. Woo explains that "Red in this chart showing coins moving to HODLers with very little history of selling."
Adding to what he wrote, we underline how magnificent it is that strong hands, from those who are not interested in selling, in the short-term, were the ones accumulating the most bitcoin.
This is excellent news for the price. The less bitcoin is available, the more likely it is the rally to continue.
The next post comes from The Wolf Of All Streets (Scott Melker), whose Twitter describes him as an investor, podcaster, and author of The Wolf Den Newsletter.
In his post, The Wolf Of All Streets shares a 4-hour chart of bitcoin’s price. He adds a few lines showing support at the bottom ($43,000; $52,000; $55,000). He wrote that bitcoin is “Retesting a key resistance as support for the first time.” This is extremely bullish, especially if bitcoin’s price holds above support. Even more exciting would be if bitcoin’s price closed the day above $55,500.
He also adds a channel showing the next resistance range, at the top, around $58,000.
Hence, in the best-case scenario, we could see bitcoin hitting the previous high, perhaps even go above $59,000 when the next rally begins.
The next tweet comes from The Moon (TheMoonCarl), a Bitcoin investor and trader with more than 188,000 followers on Twitter.
In his post, The Moon shares a chart of bitcoin’s price, and he discusses the possibility of the technical analysis (TA) indicating an upcoming “cup and handle” price formation.
According to Investopedia,
“A cup and handle is considered a bullish signal extending an uptrend, and is used to spot opportunities to go long.”
Adding to that, the trader also added that a possible target could be “$72,000”. Therefore, according to the Moon, expect a few bullish few days or even weeks.
We’re not assigning a high probability of this formation taking place until bitcoin’s price goes above its previous all-time high. If that happens, primarily until the end of the week, we will be considerably more bullish on The Moon’s analysis.
The last post of the day comes from Danny Scott, the CEO at CoinCorner.
In his short, Scott wrote a few inspiring words regarding bitcoin’s recent rapid price appreciation.
He said that
“It took 8 years for #Bitcoin first to hit $10,000. We just did $10,000 in the last week”.
We think Scott is referring to the fact that bitcoin’s price grew more than $10,000 since the past week.
Hence, just like many investors and traders usually say: “when in doubt, zoom out”.
This means taking a step back and looking into higher time-frames when you want to spot a long-term trend.
Bitcoin’s price growth has been exponential since its inception. Why would we try to short such a high appreciating asset or go against the long-term trend?
In our opinion, we prefer to ride trends than to counter them.
Bitcoin Price Prediction
At the time of this writing, bitcoin's price is close to breaking its prior record price at $58,200.
Currently, it is trading at $57,200, and buyers keep flocking to the crypto space, which indicates a continuation of the ongoing rally.
Not only that, but most analysts think the correction is entirely over, and this new rally will move bitcoin towards $60,000.
According to most analysts, the likelihood bitcoin's price continues to rise increases every day that bitcoin keeps trading above $55,000, the next support level for BTC/USD.
How do we think the price will trade today and during the weekend? As shown in the above chart, we believe that bitcoin could top around $64,000 in the next few days, assuming buyers continue to enter the space. Considering the recent volume, that scenario is quite likely to happen.
On the other hand, we don't expect the cryptocurrency to drop much below $55,000. If it falls, then $52,000 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 $52,000 and that there are almost no sellers left above the current price, at around $57,200, which means BTC/USD will soon enter discovery mode. We expect volatility to suffer a sharp increase.