Bitcoin has had a stunning week, reaching its all-time high of $ 28,400 yesterday. With this unbridled growth, the new year has brought satisfaction to investors. The price of bitcoin remains on a strong uptrend, which could be a promising outlook for the new year.
ToReport Quintel Telegraph was an unforgettable year for 2020 for many reasons, including the Corona Pandemic, urban quarantine, and economic constraints. Business closures and quarantine led to the worst economic crisis in decades. In such circumstances, we have seen governments respond to these problems with unprecedented supportive and financial incentives and monetary development measures to revitalize their economies.
Therefore, institutional investors who are aware of potential inflation or even hyperinflation and are wary of it are trying to protect their portfolio with assets that can protect their capital from the gradual depreciation of traditional currencies. So far, gold has emerged as the best source of wealth and has not disappointed investors, as it has grown by about 24% over the past year.
However, the influx of institutional investors into Bitcoin has been well visible this year, and its price growth is undeniable, especially against gold and the S & P500 index (an index of the top 500 stocks on the New York and Nasdaq stock exchanges). Some of these institutions have diversified their portfolios with bitcoins, while others have even reduced their holdings in gold to invest in bitcoins.
With Bitcoin up 244% this year, the portfolio of investors who have invested in Bitcoin earlier will definitely outperform other investors. This practice will force other investors to decide to enter the market, which will ultimately increase the likelihood of a stable Bitcoin price trend. Thus, these measures may become a trend that will attract other market currencies as well. Now, as always, we go to the chart to check the price of Bitcoin.
In a previous proprietary technical analysis based on the Three Drive model, we mentioned price growth in the short term to the $ 24,470 target. We also said that we would expect the price to fall after that.
According to the analysis, the price has moved closer to the target (by less than one percent) and according to the updated image of the analysis, it has corrected to its correction target at point A at $ 22,350. The price of Bitcoin has once again pushed up this support and has quickly reached $ 28,422 as of the previous trading day.
In the current situation, using top-down analysis, we start with the bigger picture of the price in the weekly time frame. Pay attention to the price movements in the past and the current situation in the channel. The price is close to the middle channel, so price correction after encountering this dynamic resistance could be a possibility.
The probability of starting price correction will increase according to the harmonic pattern that we will examine in the following. At the same time frame, if we look a little more closely, we will see the harmonic pattern of the Bearish Crab. This pattern will be completed in the range of $ 30,000 to $ 30,450, so it is likely that pricing will begin in this area after the template is completed. After correcting the harmonic patterns, the price usually corrects between 38.2 and 50% of the last wave of the pattern (CD).
In the daily time frame, we also see the price hitting the ceiling of the channel. According to this channel, the first price support at the bottom of the channel is at $ 24,000. At a lower timeframe, the negative divergence (-RD) that forms at the four-hour timeframe on the Makedi indicator will be activated by the intersection of the Makedi line below the signal line, confirming the start of price correction.
As we have seen, all factors point to the start of the price correction from the psychological level of $ 30,000, but this does not mean denying its fluctuations above this level in order to liquidate the situation. So in the coming weeks, monitor your open positions more than ever and control your risk.
The final suggestion is to control your risk in the trades by optimally adjusting the loss limit, and manage your capital by entering and exiting a step in support and resistance. If you do not have enough knowledge to trade, refrain from entering trades and gradually learn this knowledge by referring to the market analysis training section. This analysis should not be considered as a signal to buy or sell.