$61,557: Bitcoin’s Brand New ‘All-Time High’ Value | What’s Next?
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Bitcoin is continuing its magnificent bull run in 2021. Things have been falling in place for this crypto to reach newer heights every now and then. Bitcoin went through a minor pullback in the second week of March but immediately rebounded after that. Recently, Bitcoin broke the $60k level for the first time since its inception to create a brand new All-Time High value – ~$61,550. As we mentioned in one of our recent posts, the approval of the second stimulus package by the US government last week could be one of the potential reasons for the further surge in Bitcoin’s price.
Crypto investors and traders have been waiting for the approval of this second stimulus bill ever since November 2020, i.e., even before the US election. This wait is because of the expert forecasts of Bitcoin’s price after the approval of this bill. Crypto experts stated that there could be a strong surge in BTC’s price when this bill goes through as people might most probably use the $1,400 they receive from the government to invest in cryptos or stocks.
If we look back and see one of the reasons for the initial surge in Bitcoin’s price, the first stimulus bill’s approval seems to be the primary one. In fact, it was the beginning of the summer rally that took Bitcoin from ~$8000 to where it is now. What does the technical analysis of Bitcoin show? What to expect from this crypto in the upcoming weeks? Let’s discuss!
Bitcoin Technical Analysis
Last weekend, Bitcoin achieved its ATH by crossing the most anticipated $60k mark. Right after that, sellers started to take over the market for a while, pushing the price back to its nearest support zone – $54,249. The price of one BTC at the time of writing this article is hovering around $59k. The bullish long term rally seems to remain intact. Currently, the price action of Bitcoin could move in a range, and we believe that this consolidation could prove to be healthy before making a new higher high.
The above price chart belongs to the BTC/USD pair on the 4-hour timeframe. Buyers are trying to make a strong come back after the bulls pushed the price back to BTC’s previous support. We can see how sharply the price reacted right after reaching support. That could have been an ideal position for you to enter the market. The strong green candle from the support zone suggests the buyer strength that is prevailing in the market.
Ideally, there is no typical resistance zone for BTC’s price except for its current ATH at ~$61,550 or a round-number resistance at $62,000. Based on the strength of that resistance, the price might pullback to its current support or to the strong support zone of the daily time frame at $50k. Overall, most technical indicators suggest a ‘Strong Buy’ for this pair in the upcoming weeks. (Buy Bitcoin)
BTC/USD | 4-hour Timeframe | MACD & 200 Period Moving Average
There is a strong buy set-up on the 4-hour timeframe in the BTC/USD pair. We have applied MACD and 200-period Moving Average to gauge the market sentiment at this point accurately. In the above price chart, we can see the crossover of both the MACD lines below zero-level. However, the price remains above the 200-period MA. The ideal set-up for Bitcoin to make a higher high from its current price is if the signal line (orange) gets overtaken by the MACD line (blue), provided the price continues to stay above the 200-period moving average.
In any case, the technical analysis seems to be supporting buyers. Although sellers showed some strength for a while, the pullback didn’t create any brand new lower low. On the other hand, the fundamentals of Bitcoin is getting stronger with time as institutional adoptions continue to grow with time.
Recently, a Chinese company that makes image and video processing software Meitu bought 379.1 BTC in open-market transactions.
Institutional interest like this has built a lot of trust in Bitcoin among the public and increased its credibility multiple times. It is also one of the primary reasons for the surge in Bitcoin’s price this year.
Still thinking whether you should invest in this future currency or not? The best time to invest in Bitcoin was at the beginning of this year, and the second-best time is now. Buy Bitcoin on our website at the best rate by comparing its prices on all the major crypto exchanges. All the best!
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