What's next for Bitcoin....$56k or $16k?

Bitcoin traders and enthusiasts are riding the wave after the incredible rally from $9,000 to $42,000 throughout the 4th quarter in 2020. It certainly was an incredible run, more than quadrupling in value in less than three months.

Now we find ourselves in an early 2021 corrective phase which will end in either another Breakout/Rally attempt or an Excess Phase (Blow off) Top.

This article highlights both potential outcomes because at this stage it is difficult to determine a single high-probability outcome.

What a Bitcoin Breakout Would Look Like....Read Here.

Bitcoin Rallies Above 20k Targeting 23k or Higher

In an incredible display of support, Bitcoin rallied above $20k early in the morning on December 16. This upside breakout move coincided with a very strong Fibonacci Price Amplitude resistance arc originating from the low price level near March 20th. The implications of this upside breakout suggest Bitcoin may continue to rally higher targeting levels just above the $23k level ($23,150).

Cryptos are experiencing a price rally that is similar to what happened in 2016 and 2017. The enthusiasm for these decentralized alternate assets continues to climb as traditional hedge assets, like Gold, Silver, and others, have stalled recently. What we find interesting is the correlation between Bitcoin price advances and Precious Metal price cycles.

Price Energy Waves Align Near December 28th, 2020

Our latest research article suggests the long term US stock market cycle has transitioned into a Depreciation phase – where US stock market price levels are likely to trade in extremely volatile, possibly sideways/downside, trends over the next 5+ years. If our research is correct, global investors will search for assets that buck this trend in an attempt to seek out greater Alpha....Continue Reading Here.

Bitcoins Next Stop? $14,000 or $37,200

After the incredible rally in Cryptos recently and my team’s recent research articles about how to spot a “Blow-Off Peak”, the recent downturn in Bitcoin prices has raised a valid question – is this the start of a new “Blow-Off Top” for Bitcoin? In our recent 2-part research article on Blow-Off Tops, we suggested there are five phases to a Blow-Off top setup. 

The first is an incredible rally attempt – usually somewhat similar to a parabolic price advance. We can certainly say that Bitcoin has seen a huge price advance from near $4000 in early March to over $19,000 recently (+$15,000). Is this it? Is this a major price peak or will it continue higher?

When taken in the context of what has transpired over the past 12+ months with COVID-19 and various global lock downs, it does make sense that many more displaced workers across the globe may have become actively involved in Cryptos and alternate assets. It also makes sense that a rush into the recent upside trending in Bitcoin, starting near early October 2020, may have prompted a rush for Crypto traders/investors. Everyone loves it when their investments rally 80% or more in less than 60 days.

Yet the question remains – will Bitcoin go higher or is this the intermediate-term peak in price? Historically, the recent highs are similar to the highs set in December 2017: $19,666 in December 2017 vs. $19,490 in November 2020. Technically, this is a Double-Top setup....Continue Reading Here.

Bitcoin Crashes Over 50% From Recent Highs - Here’s Our Call on Support

Crypto enthusiasts were crushed over the Thanksgiving holiday when a fight over Bitcoin Cash and very thin liquidity prompted a massive price breakdown from recent highs. This downside move reflects a true price breakdown where Bitcoin bulls have to rethink their future strategies.

Back in October 2018, we warned that price MUST rally above the support level near $6986 in order for any future upside advance to take hold. The following week, we saw a massive price rally that lasted only a few hours and trailed off back below the $6986 support level. While we waited to see if any future price move would prompt a rally above this level, the Bitcoin price levels continued to congest.

The breakdown move over the past two weeks has been massive and hit our first target of $4000 as expected. From the recent highs, the downside move totals -52.81% so far. Our research team believes true support is near $2995 – a further -25% lower from current levels. This equates to a massive -65.85% decline in the past 40+ days.

There may be an opportunity for fresh long trades near the end of this year. We’ll alert you to any opportunities we see in the crypto-currencies as they set up. Right now, we would warn Crypto longs and enthusiasts to be very cautious of any further breakdowns in price. If the $2995 level does not hold as support, we could very easily the $1860 level before the end of January 2019.

Please visit The Technical Traders to learn more about how we can help you find and execute better trades. Our research team and proprietary price modeling systems continue to deliver success for our clients and members. We target selected sectors and trades for our members and deliver daily video analysis of most of the major markets to help our members stay ahead of market moves. Learn how we can help you find greater success in 2019 and beyond.

Chris Vermeulen