Today, the price of bitcoin continued its massive uprise and gained an additional 5.5% in the past 24 hours. Not only that, but bitcoin broke a new price record at $37,000, according to CoinGecko.
Additionally, BTC/USD is up almost 30% since 2021 began. We couldn’t have hoped for a better start.
At the time of this writing, bitcoin is trading around $37,059 Since yesterday, daily trading volume has remained mostly flat, meaning buyers continue to enter the market.
As we predicted yesterday, the price of bitcoin moved above $36,000 and will soon surpass the $37,000 range.
Today’s price appreciation could be related to the news that JP Morgan released a report stating bitcoin could be valued at $146,000. According to Reuters:
“With a market capitalisation of $575 billion, the bitcoin price would need a nearly fivefold jump to $146,000 to match the value of private gold wealth held in gold bars, coins or exchange-traded funds, the bank’s note added.”
As long as these bullish types of news continue to be released, it will attract more buyers in hopes to catch the train that will take bitcoin above $100,000.
To conclude our introduction, we think that sellers have left the market and are waiting for a new price surge. At the same time, new buyers keep entering the bitcoin market, meaning we expect the price of bitcoin to continue its uptrend towards $40,000.
We think once BTC/USD surpasses this critical price range, it will experience another significant correction of 10% or more.
As a reminder, we are confident BTC/USD will continue to move upward if:
- BTC/USD remains above its 20-day EMA (red), 50-day EMA (green) and 200-day EMA
(blue). - BTC/USD doesn’t drop below $32,000.
- BTC/USD daily volume goes back above its 21-day Moving Average.
What Do Traders Think
Today’s first tweet of the day comes from Dan Held, growth lead at cryptocurrency exchange Kraken.
In his post, Held highlights that bitcoin surged above $35,000 yesterday. Also, as we wrote above, the price of bitcoin broke a new all-time high quite close to $36,000.
Not only that, but Held wrote how the mainstream media “has declared Bitcoin “dead” 393 times over its existence.”
This is extremely bullish since it shows that every one of those 393 times the price of bitcoin dropped significantly when someone decided to declare the cryptocurrency dead, it bounced back.
Historically, each four-years bitcoin tends to reach a new record price, therefore even during extended bearish periods, it makes little sense to think the price won’t surge back up in the future.
We believe it’s important to keep this in mind since the price of bitcoin tends to be quite volatile, so investors and traders should always beware.
The second tweet comes from Pomp (Anthony Pompliano), co-founder of Morgan Creek Digital, and the writer of the daily newsletter, The Pomp Letter.
In Pomp’s post, he highlights how the total bitcoin market cap reached $650 billion for the first time. We would like to add that we believe that not only bitcoin’s market cap will reach $1 trillion, soon, but also that it will double to $2 trillion in 2021.
This means that it took bitcoin 12 years to reach $650 billion, but we think it will only make it less than one for it to double in value.
In any case, this is an extremely bullish post since it shows sheer interest by investors and traders keeps growing.
The third post of the day comes from Bitcoin Jack, a bitcoin trader and market analyst.
In his post, he shares two charts of the price of bitcoin. In the first chart, Jack highlights the price of bitcoin is currently trading in a “Chop Suey” channel, and that when the price breaks it will be to the upside.
Essentially, he thinks BTC/USD will move between $43,000 and $54,000, which goes in line with our expectations. Afterwards, the trader draws a massive pullback that stops at $34,000 and is followed by an immediate push back towards $60,000.
In the second chart, Jack dives deeper into the last half of 2020 and shows how the price of bitcoin traded in these “Chop Suey” ranges for a while before making a significant push to higher price ranges.
As Jack wrote, he identifies the bottom of the next “Chop Suey” range to be at $43,000 and the top at $54,000.
The last tweet of the day comes from The Moon (TheMoonCarl), a Bitcoin investor and trader who has almost 90,000 followers on Twitter.
The Moon’s post perfectly complements what Jack wrote above. Essentially, the trader also believes the $50,000 price range could be days away. This would push the total bitcoin market cap quite close to $1 trillion, a critical psychological level for a significant number of investors and traders.
Adding to that, a $50,000 bitcoin would also be an important milestone since it means the cryptocurrency would only need a 100% move to get to $100,000, a price level many hope bitcoin surpasses in 2021.
Don’t forget, we expect at least a massive pullback once bitcoin reaches this price range, since many investors and traders will surely take out hefty profits.
Bitcoin Price Prediction
Recently, the price of bitcoin had a major surge of more than 5% and it broke a new price record when it traded at $37,100, according to CoinGecko.
In the past 24 hours, bitcoin’s price traded around $37,000, according to CoinGecko. Not only that, but BTC/USD is up by more than 25% in the past seven days, a rather astonishing performance.
Yesterday, we predicted the price of bitcoin would make another move toward $36,000, and go above this price range. That’s precisely what happened.
Additionally, we wrote we expect BTC/USD to reach $40,000 soon, perhaps until the end of the week, given the current bullish mood.
The other excellent news is that we confirmed our suspicions that BTC/USD would find support above $30,000 when it had a significant retracement. Therefore, we don’t see how BTC/USD may fall below this critical support level, simply due to the sheer number of buyers around this price range.
As we wrote in the previous section, the main reason for the current price surge is a report recently released by JP Morgan that stated bitcoin could go as high as $146,000 in this bull-cycle.
How do we think the price will trade throughout the day? Hopefully, BTC/USD will keep its uptrend and go back above the $40,000 price range soon. As a top, we don’t think it will go above $42,000, since we think there will be additional sell orders being triggered around this price.
On the other hand, we don’t expect the digital currency to drop much below $32,000, as there are a significant number of buy orders at this support level.
To finalize, the Volume Profile Visible Range (VPVR) shows a high number of buy orders between ¥$28,000 and $26,200 and then again between $22,500 and $23,000, which means BTC/USD should not go below $23,000, even if things deteriorate significantly.
As a reminder, we believe that the price of bitcoin will continue to move up and $40,000 per bitcoin is on sight.
Still, traders should remember that the digital currency is quite volatile and could easily experience temporary price drops.
Safe trades.