Sunday, March 14, 2021

It Is Not Time to Sell Your BTC: Analyst Say Dips Likely to Be Limited

Yesterday, March 13, Bitcoin price smashed past $61,500 price level to reach a new all-time high. At 11:12 on Saturday, the price of the coin had gained 4.84% in the last 24 hours to settle for a price of $60,307.

This past week, the coin steadily rose above the $55,000 resistance against the dollar. Then, the BTC/USD pair broke the $58,000 level and settled above the 100 simple moving average (4-hours).

The uptrend gained momentum above the 76.4% Fib retracement level of the key downward move from the $58,281 swing high to $40,073 low. There is strong indication that $58,500 and $60,000 are the current resistance levels.

tradingview chart on btc price

The price is currently correcting below the $61,000 level. The first support level is near $60,000. The key bullish trend may allow the support to fall further to $58,000. Any more fall may cause a support around the $58,000 and $57,2000 levels.

On the upside, a break above $61,500 and $61,800 resistance levels will be a win for the bulls. As soon as BTC moves past $61,800, a rise to $62,500 should be expected.

The next major resistance level is $65,000. The bulls may have a hard time holding on to the market. But if the price moves higher, the expected resistance level in the near term would be $68,000 and $68,5000.

Do not sell

As the BTC price continues to enter discovery, indicators show the price has not yet peaked.

Glassnode co-founder and CTO, Rafael Schultze-Kraft noted that the unrealized profit/loss of the coin remains stable despite the rising price. This is a positive indicator for the coin.

He said in a tweet:

Bitcoin price increase while NUPL remains stable is healthy. Indicates that the market cap is not rising at an excessively faster rate than profit taking and new capital inflows. Not the top, we haven’t even crossed .75 into the greed/euphoria zone.

In addition, on-chain data according to Santiment indicates that the lastest BTC rally comes in the midst of a decline in exchange supply. While Bitcoin dormant tokens are on the move as whales take profits, retail investors are continuously buying.

Santiment data on decline in exchange supply

PlanB, author of the popular Stock-to-Flow (S2F) model has said that the BTC price can touch $100K levels in the period between April-September this year.

In corroboration, data from Skew Analytics show that the probability of Bitcoin touching $100k by the end of the year is 20%. There’s also an 18% chance that the pioneer cryptocurrency may hit the $100k mark earlier by September 2021 as shown by the gray line.

skew data showing when bitcoin may likely reach $100k

If you are looking for a reason to hold, Max Keiser’s prediction remains at $77,000 in the near term. Also, according to him, we should expect a $220,000 price by the close of the year.

BTC has continued to gain momentum since the end of last year. It is expected that the incredible gains of this first quarter will be replicated in the remaining quarters.

If you have any questions and comments on Bitcoin today, use the form below to reply.

© IbrahimAnifowoshe for Commodity News, 2021. | Permalink | No comment |
Published under: Bitcoin, Forecasts

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