Analyst outlines Bitcoin’s outlook after new price high

Leading RoboForex analyst RoboForex Dmitry Gurkovsky discusses the possible scenarios for Bitcoin’s price movement.

\n

Earlier today, Bitcoin for the umpteenth time in recent weeks reached an all-time high above $28,500. There is a view that the current bull run will continue into 2021 — institutional investors have gained full access to this market and are continuing to buy actively. Moreover, analysts are beginning to compare the fundamental component of the digital currency with ‘paper’ money, which is constantly debased, in contrast to cryptocurrencies.

\n

Already a conservative forecast for 2021 places the price at $100,000 — $200,000 per Bitcoin. However, a correction cannot be ruled out — any trend must ‘breathe’ before continuing its ascent.

\n

Possibly, the positive influence on Bitcoin’s price is also the situation around XRP in connection with the SEC’s lawsuit against Ripple.

\n

XRP’s market capitalization has fallen aggressively, and since news of the SEC action against Ripple emerged, the asset has fallen in price by more than 50%. It is quite possible that XRP holders are selling their assets now and turning to Bitcoin for investment. Some exchanges have already delisted XRP, as platforms are reluctant to support cryptocurrencies that could be deemed securities.

\n

In the current situation, when building an uptrend, we only observe a greater incline of such lines upwards, which means the trend is gaining strength. The nearest important support now stands at $25,690; a break of this area could trigger a correction toward $24,000 and $22,000.

\n

Monthly BTC/USD chart from Bitstamp on TradingView.

\n

From a technical perspective, the odds of Bitcoin’s growth are fairly high. On the monthly chart, the upper boundary of the triangle pattern was breached, with the target of the pattern at $50,000. Therefore, the digital asset could easily continue its growth as early as the beginning of 2021.

\n

If we regard the entire current structure as an ascending 1-1 pattern, the growth target could be $150,000–$160,000. It is important to understand that this is merely a forecast for longer timeframes, the realization of which may take a long time with sizable downward corrections.

\n

4-hour BTC/USD chart from Bitstamp on TradingView.

\n

On the 4-hour chart, there was a breakout of the horizontal correction to the upside, as the market moved from $24,000 to $28,325. It should not be ruled out that the current move could repeat the previous impulse and push the price to around $32,500.

\n

A breakout of the lower boundary of the ascending channel could signal a developing correction, indicating a slowdown in the bullish trend and a correction toward $24,000. Investors are also watching the RSI indicator, whose values have not fallen below 30 since the breakout of $20,000. Investors simply do not allow a strong correction in the asset, and continue to buy on its slightest dips.

\n

Subscribe to ForkLog news on Telegram: ForkLog FEED — all the news feed, ForkLog — the most important news and polls.