I did an analysis on bitcoin’s price around a month ago where I indicated that it was starting to consolidate and that massive price action could be expected in the near future. Well, looking at the charts again today, it seems as if my prediction is being even further supported. Bitcoin continues to move in a downwards triangle and is starting to reach the bottom of this, where price swings are vividly less volatile, and it begins to consolidate between the $6100 -$6500 range. Furthermore, there is a significant tightening of the Bollinger bands which hasn’t been seen for a very long time. In fact, last time Bollinger bands were seen this tight was slightly before the massive bull run we experience early this year. Last year, it took only six weeks to go from the price we are currently at today, to hit highs around $21,000. Despite there being signs of massive price action, it is not possible to tell whether it will be up and down, however, I believe it will be up. Institutional money will continue to pour into the crypto market, as bitcoin futures are already in play, as well as the almost guaranteed implementation of Bitcoin ETF’s. A recent survey by Fundstrat, found that 54% of institutions believe that Bitcoin has found its bottom around the current price. Furthermore, there is exponential upside in terms of the volume that can be delivered from the developing world, where there are massive numbers of people who will continue to gain access to purchasing and selling Bitcoin.
