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Bitcoin has finally managed to claw its way back to the keystone $8,000 mark after a hair-raising two-month-long decline that saw the asset dip below the psychological $6,000 support twice.
Today, we see another 7% gain added to Bitcoin’s current weekly surge of 22.35% (at time of writing), as hype continues to build over Bitcoin ETF speculations due to be decided next month.
Right now, the #1 crypto asset is swinging wildly above and below the $8,000 level as uncertainty over BTC’s next move plays havoc with investor’s nerves. Key levels such as this one are even difficult to manipulate as the current market is showing no clear direction as to where it’s going next.
Whoever comes out as the winner in this battle, profit takers or BTC supporters, will be a good reflection of market sentiment going forward. Bullish or bearish, the question on everybody’s mind right now is still the same – how long can this uptrend go on for?
The story so far
In the BTC/USD chart over two-hour candles we can see that Bitcoin tracked well inside the bullish inverse head and shoulders pattern that was forecasted in an earlier technical analysis at the start of this month.
Once the right shoulder of this pattern broke through the neckline at $6,800, we were expecting gains to peak at the $7,913 before correcting, but support was able to carry on through this morning and break the $8,000 level.
The story now
Right now, Bitcoin has just exploded for a second time, spiking to $8,100 as the bulls get back to work. This could be the ignition many traders have been hoping for, with a number of promising indicators supporting this next big movement:
- RSI is climbing even higher outside of the channel as the frenzy continues, this shows strong buying momentum with investors unphased by the overbought signal.
- The faster moving average on the MACD indicator is pulling further away from the slower moving average, as more buy orders flood the BTC market.
- We finally have a bullish crossover between the 200 and 500 EMA lines (red and yellow, respectively) which is a very strong indication of a bullish continuation going into the last week of this month.
- Ichimoku is also showing a bullish T/K crossing with a high rising supporting kumo passing through the $7,740 mark.
- Candles have broken through the upper Bollinger bands, which are starting to expand as the bullish market movement intensifies.
The infamous King of Crypto, John Mcafee, has been talking about this for the last few months, including today, and reaffirms that “the bull market is right around the corner”. Looking at these indicators, it certainly feels like something is about to happen.
Bitcoin (BTC) price prediction
All ROI’s for this asset are set from the $8,100 level where BTC is currently valued (at the time of writing).
Price Target 1: Our first price target for BTC going forward is to the $8,380 mark (3.46% ROI).
Price Target 2: From there we are expecting bulls to push on towards the 0.0 fib level at $8,700 (7.42% ROI).
Price Target 3: Finally, our top end price target is the $9,000 keystone, as the frenzy continues through towards the fabled $10K mark (11.11% ROI).