Despite breaking the $ 50K mark on Monday and further gains, bitcoin was unable to hold on to it and corrected to reach $ 49,380 so far. However, the fact that bitcoin managed to stay above this mark for several hours is encouraging.
Bitcoin peaked at noon on Monday: $ 50,500, after which in the afternoon it began to decline, reaching a low of $ 48,780. This weakness can rather be considered not the beginning of a large correction, but an increase.
If you look at the chart of Bitcoin movements, then starting from August 19, we will see an uptrend, which is now at the level of about $ 48,900 – this is the threshold at which the 100-hour moving average is also located.
If Bitcoin falls below this threshold, then it will receive the first “bearish” warning. It will be supported by overcoming the psychological level of $ 48 thousand, then the area of $ 47- $ 47 350, where the 200-hour moving average is also located.
If you look closely at the daily chart on Monday, you will see that the 200-day moving average is $ 45,900, and a break below this key indicator would be a strong bearish signal.
However, there seems to be a chance that Bitcoin will continue to rise. And several analysts are very optimistic: according to their estimates, Bitcoin this year will be $ 100 thousand.
According to Craig Earlam, senior analyst at Oanda exchange platform, Bitcoin’s return to $ 50K is a great psychological victory for cryptocurrency, which will undoubtedly make you wonder how long it will take before it returns to record territory.
“They predict him a breakthrough to $ 100 thousand, but do not forget, this has been said since a few years ago, he almost reached $ 20 thousand.”
Iqbal Gundham, VP of Transactions at Ledger, also shares this view: due to the hype around ETFs or countries accepting BTC as legal tender, the next major hurdle will be to break the $ 100,000 mark by the end of the year.
Finally, a third analyst – Anthony Pompliano of Pomp Investments – calculated that the price of BTC will rise “very, very quickly” in 2021, based on his forecast of the Bitcoin rally in 2017: during that bullish period, the price of this cryptocurrency doubled from $ 10 to $ 20K in less than 20 days.
“I would not be surprised if something like this happens before the end of the year, knowing that Bitcoin surpassed $ 50K yesterday, it is assumed that its target is $ 100K.”
