Bitc0in Price Forecast
Contents
Introduction
The online crypto brokers saw a sharp drop on the trading platform during the trading week as the digital asset saw about a 19% drop in the cryptocurrency market as the market closed for the week. Reports show that whales are buying off the retails traders from the market and big institutional are buying BTC.
BTCUSD Technical Analysis
Monthly Chart Bullish
Monthly Resistance Levels: 65392, 53127
Monthly Support Levels: 28673, 41500
The month started with a new high of 53127 since the price of BTCUSD started its uptrend in the past two months. The online brokers who have a long position open will have to wait for the price to go higher for the upward move to favor them.
The recent drop in price was expected but not in that magnitude, however, because it is a resistance zone. Buyers of BTC/USD will need a powerful force to breakout above the resistance zones before the trend can have a continuation of bullish momentum on the monthly chart.
The online brokers who have an open position on the buying trend will anticipate a reversal on the 41500 levels for a reversal for the price to bounce back for another retest of the resistance zones.
Weekly Chart
Weekly Resistance Levels: 60000, 53000
Weekly Support Levels: 42795, 36000
The BTCUSD had a sharp drop from the 53000 resistance zones after reaching that high some weeks back. Change in the market’s dynamics brought about the fall of price.
We expect the correction phase of the bullish rally to slow around the 42795 levels before it bounces back up. The correction has made about a 19.2% fall from the price level of 53000 down to the low of 42795. If the price should close lower, the short position traders will target the 36000 levels.
Daily Chart
Daily Resistance 53100, 50000
Daily Support 36100, 44000, 42463, 42000
The healthy trend of bitcoin was technically distributed by some whales who placed sell orders around the resistance zones intending to take out the retail traders who had long positions opened. We may see the bitcoin range for a while before another major move is seen in the market.
However, long position traders are hoping to hold the support zone of 44000 and 42463 for a reverser of price. If the price should close lower than the levels, the Bullish traders will search for another level of support to buy from when the price bounces from the zone.
H4 Chart
4 Hour Resistance 50560, 499841, 52000, 47500,
4Hour Support 48189, 43978, 42000
We know bitcoin for its volatility and the drop of price on the 4-hour chart shows how the movement of two H4 candles cleared the bullish run that took about a month to that high before the sharp drop.
With this drop in bitcoin price, the market will take a while before price can break out of the range either to the upside or downside of the chart on the H4 time frame.
Connecting the highs from the resistance levels of 47500, we can see that the chart pattern is a descending triangle while the support levels hold, a close below the zone will take the price of bitcoin lower while a breakout of the trendline upwards may push the price up.
Bullish Scenario:
A breakout above from the H4 trendline will give the buyers some advantage to push the price of bitcoin higher and, if possible, to the resistance zone that took the price down.
Bearish Scenario
In the daily time frame, the long candle that took down the price from the resistance zone is a massive candle that has a lot of selling pressure. If the momentum is maintained on the time frame, we may see the bearish pressure to continue once the price closes below the support levels of 42000.
Bitcoin BTC News Events
Institutional Interest Grows
From the research done by a Hedge fund firm Brevan Howard, they said that Institutions are investing more into digital assets and such steps are attracting more investors. Brevan Howard is known for its adoption of the crypto market and trading with good scope for outsized gains in the market.
The firm launched a new unit known as BH Digital with the sole focus on digital assets and cryptocurrency. The firm also hired the services of Colleen Sullivan, who will oversee the private and investment aspect of cryptocurrency.
The decision of Howard is coming after some top money managers like Paul Tudor Jones had invested in bitcoin, and another firm Man Group EMG trades bitcoin futures. Report from PriceWater House Coopers shows that the records from Alternative Investment Association and Elwood Asset Management showed total assets under management of crypto hedge funds globally is almost twice of it the previous year. From $2billion to $3.8billion as of 2020.
Institutional interest is on the rise, as what was a fad to them is becoming a permanent structure in the financial world, thereby leading to a rise among institutions trading cryptocurrencies.
Conclusion and BTCUSD Projection
Institutional interest is on the rise as more hedge fund managers and corporate bodies are buying from the dip and investing in the crypto asset. They are providing trading access for their investors as well. This interest is creating a general acceptance of bitcoin in the market and among online brokers.
Recently, a British Hedge Fund Brevan Howard has bought more bitcoin to his portfolio and also sets up a crypto unit for its investors who wish to invest in bitcoin and other cryptocurrencies.
The BTC is on a bearish run since the price broke below some support levels to overturn the bullish swing into a bearish swing. A close lower than support levels of 42000 will push the price lower.
I've been a professional trader for over 5 years.
Currently I work as forex analyst for different investment companies.
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