According to trading platform Decentrader, Bitcoin (BTC), is “ready for rally” once again as BTC’s price action turns bullish at crucial timesframes.
The firm’s latest market update, Oct. 29, predicted that Bitcoin would see new upside. Bitcoin has been stuck below its all-time highs this past week.
End-of-the-year potential of $150,000
Analysts believe that despite the market’s volatility in BTC/USD, there are still opportunities to make short-term gains.
Although the primary focus of discussion is on the area around the year’s highs, $63,900 and $67.100, there could be real friction in the price discovery territory closer to $100,000.
According to the latest forecasts, “On a technical and market cycle basis, we believe that $BTC’s next major problem will not occur until we reach $85,000 – $90,000.”
This is partly due to a moving average crossover events involving the 128 and 200-day trends. This has historically generated “sustained upside.”
Closer to the moment, Bitcoin’s 3-day chart, which Decentrader considers to be an extremely accurate price tool, has turned bullish. This contradicts the current bearish weekly and daily setups.
This is just one of the ingredients that could lead to price action, which could see Bitcoin reach $150,000 by 2022.
BTC/USD chart showing channel top target. Source: Decentrader
The current status quo regarding the total Bitcoin supply should be helpful — exchange reserves continue their fall, which indicates a resolve to hold, instead of sell, among traders.
“Evidence suggests that the existing market participants are bullish. This is supported by the continued withdrawal of Bitcoin from cryptocurrency exchanges, as users choose to store their Bitcoin in cold storage. “The net effect of this is that the short-term supply is decreased,” the update said about Bitcoin.
“Until this trend changes, it will continue to exert upward pressure on the price because demand for Bitcoin must accept higher prices given the limited supply.”
Bitcoin exchange reserves chart. Source: Bybt
RK investigates bull market progress
Asset manager ARK Invest also offers a wider view of Bitcoin’s state at the end “Uptober”.
Related: Veteran trader calls 2018 the crash.
The infamously bullish company compiled the metrics needed to determine how much upside BTC/USD has left in the latest installment of its dedicated guides.
According to Cointelegraph, the majority of bull runs are still in progress, even though some have entered territory that has traditionally signaled a top.
“Bitcoin’s value, in our opinion, is a function its economic utility. While bitcoin’s price is a function its supply and demand, it is also a function its value. We believe that investors should be able assess buyer and seller behavior on Bitcoin over the short to medium term and use relative-value metrics for managing bitcoin positions actively,” reads the commentary.
Eileen Wilson –Technology and Energy
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