Bitcoin off and running into next stage of bull market

After reaching its record-breaking price of nearly $74,000 two weeks ago, bitcoin has been steadily gaining momentum and could potentially reach that level once more. If it manages to sustain this price, a significant price surge may follow.

A supply shock like no other

Approximately 900 bitcoins are released daily into circulation through the network. However, purchases of Bitcoin ETFs like those offered by Blackrock and Fidelity often exceed this amount. Adding to the tension, the total supply is slated to be cut in half starting in April. This situation could lead to a significant decrease in the availability of bitcoins, causing a major disruption in the market.

Bull flag breakout

Within an hour, Bitcoin ($BTC) has burst past the limits of its bull flag pattern. Based on this pattern, Bitcoin’s price might reach as high as $76,000, setting a new record.

Inverse head and shoulders pattern

Looking at a broader perspective over the past 4 hours, Bitcoin displays an inverted head and shoulders chart pattern with a projected price increase of $74,400 based on this pattern’s typical price move. Consequently, both patterns lead the price above the previous record-high value.

In other words, the situation seems clear-cut and decisions have been made, but keep in mind that unpredictability is a common trait in financial markets – it’s all about assessing possibilities rather than absolute certainties.

Considering this connection, let’s ponder some hypotheses regarding Bitcoin’s price development during the upcoming weeks and months. Bitcoin’s price seems to mirror stock market trends; a rising stock market often results in a rising Bitcoin price. Conversely, a declining stock market likely leads to a falling Bitcoin price as well.

Stock markets in line with bitcoin

Currently, the Nasdaq 100 Index is surging upward without apparent hesitation. Since the index is currently exploring new prices, it may be beneficial to identify potential price levels using Fibonacci extensions. For instance, the 1.618 Fibonacci extension level lies at 20553, implying there could still be further growth from this point. The S&P 500 is exhibiting a similar trend.

The price trend for Bitcoin may see an even stronger surge than what we’ve witnessed previously. However, just like potholes on the road, corrections can cause momentary setbacks. But by staying the course, you increase the likelihood of reaching your destination successfully.

The future value of bitcoin remains unclear, with more moderate predictions putting it at approximately $100,000. This estimation is derived from applying the Fibonacci sequence in a similar fashion to how it was used for the Nasdaq. Exercise caution while trading.

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2024-03-28 19:01