As a seasoned crypto investor with a decade of experience under my belt, I’ve seen more than a few market cycles. The current state of the market might be causing some fear, but I’m not one to let that cloud my judgement. The recent consolidation period was necessary for Bitcoin to absorb its unprecedented gains earlier this year.
Fear still pervades the crypto market. Bitcoin (BTC) has managed to stay above the important $58,000, but sentiment is still poor. However, certain macro indicators have now signalled that a big change is coming. Is Bitcoin about to do the unexpected and head back to the all-time high?
A long period of consolidation was necessary
In September 2023, when Bitcoin embarked on its steep climb, few anticipated the subsequent 196% increase, translating to approximately $49,000 over approximately 180 days. This was an extraordinary rise, temporarily paused by a minor correction of 21%.
A significant shift like this one might require an extended phase for stabilization, allowing the market to adapt properly. After hitting a record high of $73,800 24 weeks ago, some market signals are suggesting that Bitcoin ($BTC) could soon break free from its recent sideways and downward trend and embark on the next phase of its bull run.
$BTC wakes up with a bang
In the next hourly timeframe, Bitcoin’s price showed a significant surge on Tuesday. It managed to break through the channel’s top but was stopped by the resistance at approximately $61,000. We will need to observe if it returns to test the level of the breakout around $60,000 before potentially moving upwards further.
Weekly momentum indicator shaping for an upside signal
On longer time scales, hints about Bitcoin’s future trends become clearer. Currently, the $58,000 level appears to be providing solid support. Looking closely at the stochastic RSI near the bottom of the chart reveals that the lines are forming a pattern suggesting they may cross soon.
The fast, blue line is now pointing upwards and appears set to intersect with the slower orange line again. If this intersection happens, it could indicate a significant surge in positive momentum for Bitcoin ($BTC). This alone might be enough to propel Bitcoin back towards its record high, and possibly even surpass it.
2-week stochastic RSI projecting similar signal
From my perspective analyzing the 2-week chart, it seems we’re witnessing a similar stochastic RSI crossover happening again. If these indicator lines persist in rising and manage to surpass the 20 level, the potential upward momentum could be substantial.
If the Bitcoin price manages to surpass the resistance levels at $61,000 and then $63,000, it may signal an advance towards $69,000. This significant level is where all the candle bodies on the 2-week chart have their highest points, and also marks the top of the wick during the bull market period from 2021 to 2022.
$100,000 Bitcoin?
While it might seem overly optimistic to consider such a distant possibility right now, should the predicted stochastic events occur, there’s a chance that Bitcoin could reach a record-breaking price of $100,000.
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2024-08-20 12:11