With the wide range of institutional investors coming in, we saw a highly impressive rally in BTC price. From this year’s low price around $3,000 to an all time high price above $42,000, we saw a gain of almost 14 times this year in BTC from its yearly low price during the crash in March.
BTC was struggling to break the resistance of $20,000 and we saw multiple rejections at that level. But once the resistance at $20,000 was broken, we saw a highly impressive rally by BTC. One by one, all the checkpoints were reached and flipped to support. We saw a small resistance towards $30,000 but even that did not last for long and BTC jumped quickly from $30,000 to $42,000 within a week to establish an all time high price.
But was $42,000 the top and are we going to see a major correction in BTC price? Let us find out.
BTC – Price Prediction – 4 hour
The 4 hourly chart on BTC is very bearish. BTC could not hold the support at $34,000 and we saw a sell off towards the lower support of $31,000. This area also corresponds to the trend line support area. BTC has to close multiple 4 hourly candles above this green support zone of $31,000 and quickly reclaim $34,000 and flip it to support.
If not, this could pan out to be an inverse head and shoulder with the right shoulder forming at $34,000 and we could start seeing a move towards $29,100, $26,300 and $24,100.
BTC – Price Prediction – Daily
BTC almost reached the 2.618 fib at $44,000 as per our previous chart. A rejection from this price or the area around this price was expected and BTC has now dropped to our support zone of $32,000. This is an important level to hold for the correction to be over. If this level does now hold, we can start seeing a move towards 0.618 fib at $24,000 with stops at $27,700 and $25600. How BTC reacts at the lower fibs will determine the next move of BTC. IF $32,000 holds, we could again start seeing BTC making a move towards $44,000.
BTC/USD – Price Prediction – Weekly
Weekly candle also suggest that the fib at $32,000 is important. If we break this fib, there won’t be any substantial support till early $20,000 region. If this region can hold and we manage to close the weekly candle above this 1.618 fib, we can start targeting the 2.618 fib towards $50,000.
Images courtesy of TradingView.
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