Bullish Bitcoin (BTC), but caution for short term

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As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous cycles and trends. The current bullish sentiment around Bitcoin is reminiscent of the dot-com boom, albeit with a more profound impact. Peter Brandt’s prediction of $150,000 Bitcoin is certainly intriguing, but as history has shown us, even the most astute analysts can be wrong at times.

The optimistic investors of Bitcoin are making a comeback; however, reaching $51,000 again might be possible before that. Renowned trader Peter Brandt has forecasted a potential $150,000 value for Bitcoin ($BTC) based on his chart analysis on X. Nevertheless, Bitcoin ($BTC) may not have completely emerged from its short-term struggles as of now.

Bulls and billionaires

There’s a possibility that Bitcoin has reached or is nearing its lowest point in this six-month correction, with $49,000 potentially serving as that bottom. Provided there aren’t any major economic shocks similar to the Japan carry trade crash, it appears that Bitcoin could be poised for an upward trend once more.

Peter Brandt, an outstanding trader, recently shared a chart on his Twitter account indicating that Bitcoin ($BTC) is currently experiencing a dramatic upward trend, which he terms as a ‘parabolic rise.’ He predicts that this surge could potentially peak at around $150,000 by the late summer of 2025.

An X account that always causes polemic discussion is that of famed billionaire entrepreneur Robert Kiyosaki. His post on Monday warned of holding bonds, which are a country’s debt. He said that while crashes in the market are “visible”, “banking crashes are hidden”, and that these are “much more dangerous”. He said this was one reason why he invests in physical assets like gold, silver, and Bitcoin.

One more dip for $BTC?

As Bitcoin (BTC) could potentially be a preferred investment option for the remainder of this year and into the next, it’s crucial for traders to remember that, while it may reign supreme among cryptocurrencies, it still isn’t entirely free from challenges ahead.

On the temporary timeline presented, Bitcoin (BTC) appears to have burst free from the downward trendline. Yet, the value has been kept in check at approximately $57,000 by a resistance level, with the exception of a quick spike up to around $58,000.

The projected price might reach approximately $60,000 as a potential peak within the ascending channel. However, it’s important to note that the Stochastic RSIs for the 4-hour, 8-hour, and 12-hour periods are either at or nearing their maximum, suggesting that the price’s upward movement might be slowing down or even reversing soon.

If Bitcoin’s price starts falling again, there’s a possibility it might revisit the upper boundary of its current trending pattern. Breaking below this trend line and returning within the channel wouldn’t be an optimistic scenario, instead suggesting a bearish outlook for the cryptocurrency.

Macro indicator about to turn bullish?

On a weekly scale, we observe two possible scenarios for Bitcoin (BTC) price movement. Firstly, the price must surpass the resistance level of $58,000 to transform it into new support. Secondly, there’s a possibility that the price could fall below the flag and its underlying support at $51,000.

Moving sideways for extended periods might not be feasible anymore since key economic indicators appear poised to shatter. Over the last six months, the Relative Strength Index at the graph’s base has been steadily declining.

A string of dips in both high and low prices has occurred. Yet, the indicator has now touched a crucial support point (represented by an orange line), and at present, it’s indicating an upward direction. If there’s a rebound from this support and a breakthrough the trend line, Bitcoin could once again follow its usual trajectory.

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2024-09-10 13:01