As Bitcoin prepares for a $ 16,000 re-attack, Altcoins will move in line with the market’s dominant currency.
ToReport The Bitcoin Telegraph has almost reached its all-time high of $ 16,000 this week. Bill Miller, a legendary investor in CNBC, has stated that the law of supply and demand is in Bitcoin’s favor. While annual supply is growing by about 2.5 percent, demand is growing at a faster rate. Miller expects that every large bank, high asset net worth companies, and investment banks will eventually engage with digital currencies. Although bitcoin price fluctuations remain high, Miller expects investors to focus strongly on bitcoin, as the risk of its value being zero will be much lower than before.
At $ 15,300 at the time of writing and worth more than $ 280 billion, Bitcoin is now the world’s 21st largest asset in terms of market value. The rise of Bitcoin in the list of the world’s largest assets shows the astonishing progress of this digital currency in the last year in order to become one of the most profitable assets.
ToReport In the past few hours, Pfizer Pharmaceuticals has announced that preliminary data suggest that their vaccine in the third phase will be more than 90 percent effective against Covid-19. Announcing the news and Trump referring to this issue on his Twitter account, the Dow Jones Industrial Average has experienced a sudden rise and gold has fallen in return.
On the other hand, the price of bitcoin seems to have expanded a little too much in the short term, and it is possible that the price of bitcoin will rest a bit as the altcoins progress. Therefore, if the upward sentiment and excitement of the market are maintained, a group of quinces will be able to record better performance in the short term. For more information, go to the Bitcoin price chart in US dollars in different time frames.
If we look closely at the weekly chart of bitcoin prices in US dollars, we will see the completion of a Gartley harmonic pattern in the range of $ 16,000 to $ 16,300. The price usually corrects between 38.2 and 50% of the last wave of the price after the end of the pattern. These levels are at $ 11,540 and $ 10,170, respectively, which will be considered higher support due to the rising price guard. The 23.2% Fibonacci retracement level of this wave is also at $ 13,200, which would be a good and ideal area for price pullback. But we must keep in mind that price corrections may not occur all at once until they are filled in time, and ideal conditions in financial markets will occur rarely. A valid break above the resistance area will also strengthen the price uptrend.
At the same time frame, we see the price hitting the ceiling of the ascending channel plotted in the logarithmic diagram. In order to validate the channel, pay attention to the number and manner of price reactions to the midline of the channel.
In the daily time frame, the price has reached the ceiling of the drawn channel and the negative divergence in the relative strength index (RSI) has remained strong. Middle Channel support is at $ 14,000 and channel floor support is at $ 13,200. The $ 15,000 level will also be price psychological support.
But with these interpretations, the price trend is still rising and fighting the trend will not lead to profit. So control your risk in the coming weeks by optimally adjusting your loss limit, and manage your capital by stepping in and out of support and resistance.