Short-Time Technicals Predict Price Rally for Bitcoin

At the moment, Bitcoin prices are mimicking September when the price is corrected by 25% before a reset. However, the ongoing FUD and liquidation of the LTH positions have wreaked havoc among the investors who are wondering if the bull rally has ended for the current year. On-chain data analysis and technical breakdown answer these important questions.

TradingView shares the daily timeframe analysis showing Bitcoin prices forming higher highs and lower highs that invokes a bullish development. The analysis points out the differences between the wave A and wave B formation, citing a smaller frequency of red candles in the latter. Furthermore, the downtrend slope in wave B is steeper in comparison to ‘wave A’, suggesting an uptrend. Wave B was able to reach the resistance faster than wave A as well. If Bitcoin keeps developing in the same path, the next wave points to the $90K level.

Taking a look at the lower timeframe for short-term price prediction, TradingView projections show Bitcoin prices managing to move away from the downtrend line. During the last 24 hours, Bitcoin prices were able to get out of the lower lows. However, the breakout has not been officially confirmed yet.

If Bitcoin bulls manage to push the price past the key resistance at $60K, registering a higher high in the process, uptrend formation will become more likely to occur. Nevertheless, bulls are focusing on the higher lows at $53k and $53k before aiming for the big targets. As per the All Exchange Reserve statistics provided by CryptoQuant, the supply at the exchanges has been depleted since July when Bitcoin crashed to $30K.

At present, Bitcoin is 23% depreciated from its latest ATH in November at $69k. In comparison to the ATH of April when Bitcoin registered $63k for the first time, profit realization has not been maximized for the current sell-off after November noted by CryptoQuant.

The 200 MDA and price indicator Mayer Multiple, courtesy of TradingView, pits the important price points for Bitcoin since July till date. The 200 MA indicates that the current market value for the flagship crypto is higher than the $46K prediction and rests in a lower-risk zone. On the other hand, the indicator also shows that the highest risk for Bitcoin falls in the $80K to $110K bracket.

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