Bitcoin reached new highs this week, the closing price $6199. A new all-time high. I think most of this was the market switching altcoins to Bitcoin for free Bitcoin Gold (BTG). We could see the same dominance from Bitcoin in the weeks leading up to the 2x hard fork. Bitcoins market dominance peaked around 59% on the 21st of October, the highest market share since a low of 36% in June!
Below is a screenshot of the current bull run Bitcoin is on.
Everytime Bitcoin makes a significant new high it retraces to test old highs or long-term supports. In this case, we can see the MA-100 (Orange Line in Picture Above) as a major support on the daily chart. These retraces usually last around 5-10 days, Where we see some violent jumps in the price of Bitcoin. A target price of $4500 - 4400 also lines up with the Fibonacci retracement tool at .50 to .382 area ( Also seen in the picture above. )
On the daily Ichimoku Cloud Chart, we can see a larger separation of the Tenkan-Sen line (Green Line) and the Kinjun-Sen line(Pink). The Tenkan-Sen line (Green Line) has risen above the Kinjun-Sen line(Pink) indicating an overbought status.
Which I would expect the price and the Tenkan-Sen line (Green Line) to come down to meet the Kinjun-Sen line(Pink).
The Kinjun-Sen line(Pink) acts as support below the price and on the daily chart has historically proven to be a major support level. I would fully expect Bitcoin to bounce in this area.
I expect a major re-trace in the price of Bitcoin to $4500 level, which is indicated by the Fibonacci tool, Ichimoku Cloud and Historical price action in similar setups.
I expect this to be a short-term move and also that the price bounces quickly to recover after hitting the MA100 area. Once recovered we should expect Bitcoin to hit a new All-Time High after a couple of weeks, barring the x2 drama.
