Bitcoin Finds Support: Will It Last?
The well-known (but anonymous) analyst known as PlanB predicted that Bitcoin's price will reach $150,000 by the end of this year and $800,000 by 2025. How realistic is this?
Analyzing the long-term BTC/USD chart on May 16, we built a "roadmap" for Bitcoin's price, which appeared as an expanding fan consisting of a median line, support levels below it, and resistance levels above it.
Analyzing the BTC/USD chart on June 13, we noted:
A lack of buyers willing to pay more than $70k per coin, suggesting a potential price decline from the median to the support line;
A descending channel (shown in red), which could frame this decline.
How has the market situation changed over the past week?
Since our last publication, Bitcoin's price has decreased within the red channel from approximately 67,300 to the Support 1 line around 64,800, which is part of the "roadmap" and found support there forming a bullish "inverse head and shoulders" pattern on the BTC/USD chart.
The upward movement observed today, June 20, has broken through the median line of the red channel and the "neckline" of the mentioned pattern.
Therefore, in terms of technical analysis, it is reasonable to state that the bulls are using Support 1 to seize the initiative. Will they succeed?
In a negative scenario, the bounce from Support 1 might be weak, putting Support 1 at risk of breaking with the prospect of further decline.
In a positive scenario, if the bulls succeed, Bitcoin's price could break out of the red channel and head towards the psychological level of $70,000 per coin. The ability to reach and sustain above this level, resuming movement along the median, would provide sufficient grounds to suggest that Bitcoin is on track, and optimists (like PlanB) would find confirmation for their bold predictions.
Read more: https://fxopen.com/blog/en/oa-bitcoin-finds-support-will-it-last/
Text source: Forex Trading Blog
