Leading RoboForex analyst RoboForex Dmitry Gurkovsky explains the possible scenarios for Bitcoin’s price movement.
The price of Bitcoin for the first time since December 2017 broke through the level of $18 000. However, trader sentiment is polarized: some believe in aggressive price growth and say this is only the start of a bull rally, while others expect a deep correction. In their view, large institutional investors are not ready to buy at the highs and await lower prices for good purchases.
Indeed, as the price approached the $18 500 level, there was a strong bounce down to $17 200, but even in this situation traders are not afraid of rising volatility and are ready to buy.
We could observe a similar correction when testing the $16 000 level, when the price fell to $14 300 and instantly bounced back. Probably, as quotes approach their absolute maximum, corrections could reach several thousand dollars, so in the near term one should be prepared for a significant rise in volatility.
Technically, the current trend remains quite strong. On the daily chart, BTC/USD quotes are confidently breaking through the upper bounds of the ascending channels, which serves as a strong signal in favour of further growth of the asset. It seems that in the near term the bulls will easily breach the $20,000 level. In that case, the next targets for growth could be at $22,000 and $25,000.
Daily BTC/USD chart on the Bitstamp exchange from TradingView.
On the 4-hour chart after today\’s correction there are grounds for forming the \”Diamond\” pattern, which could act as a continuation model should its upper boundary be breached.
4-hour BTC/USD chart on the Bitstamp exchange from TradingView.
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