Bitcoin (BTC) is “ready to rally” again as BTC price action turns bullish on crucial time frames, according to trading platform Decentrader.
In its latest market update on October 29, the company predicted a further rise for Bitcoin, which has languished below old all-time highs this week.
Potential of $ 150,000 at the end of the year
Despite sideways moves in BTC / USD leaving markets guessing, there is still a chance that gains will kick in in the short term, analysts say.
While the area around this year’s two highs – $ 63,900 and $ 67,100 – is the main topic of discussion, the real friction could actually be far into price discovery territory, closer to $ 100,000. .
“On a technical, market cycle and chain level, we continue to believe that the next major area of difficulty for $ BTC will not hit until we approach $ 85,000 to $ 90,000,” provides for the update.
This is in part due to a moving average crossover event involving the 128 and 200 day trends, which historically triggered a “sustained” rise.
Closer to the present, Bitcoin’s three-day chart, which Decentrader considers a particularly accurate price tool, is now bullish, contradicting the current neutral daily and weekly bearish pattern.
It’s an ingredient that is fueling a likely channel of price action that could see Bitcoin hit $ 150,000 by early 2022.
The status quo with the overall supply of Bitcoin should contribute to the significance – foreign exchange reserves continue to decline, indicating the determination to hold, rather than sell, among traders.
“Evidence continues to suggest that existing market players remain bullish. A supporting data point is the continual drainage of Bitcoin from exchanges when users choose to put their Bitcoin in cold storage. The net impact of this is that the short-term supply is reduced, ”concluded the update on Bitcoin.
“Until this trend changes, it will continue to exert upward pressure on prices as demand for Bitcoin has to accept higher prices from the limited supply available.”
ARK investigates bull market progress
Asset manager ARK Invest also takes a broader look at the state of Bitcoin at the end of “Uptober”.
Related: Don’t Be Bearish On Bitcoin Yet, Says Veteran Trader Who Called The 2018 Crash
In the latest installment of its dedicated guides released this week, the infamous bullish firm counted the metrics to assess how much of the overall BTC / USD rise was left.
The majority say, as Cointelegraph reported, that the bull run is far from over, despite some heading into territory that has historically signaled a cycle high.
“In our opinion, the value of Bitcoin is a function of its economic utility, while the value of Bitcoin is a function of its supply and demand. In the short to medium term, we believe investors should be able to assess the behavior of buyers and sellers on Bitcoin and use relative value metrics to actively manage bitcoin positions, ”the report reads. accompanying commentary.