Bitcoin has formed higher lows and higher highs to create a rising wedge pattern on its 1-hour time frame. The price just broke past the resistance to signal that a climb of the same height might follow.
The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, the climb is more likely to gain traction than to reverse. The wedge spans $9,700 to around $13,200 so the rally could last by around $3,500.
RSI is heading up to show that bullish momentum is present but that buyers might be exhausted as the oscillator is already dipping into the overbought zone. Turning lower could take the price back inside the wedge. Similarly is also in the overbought region to reflect exhaustion, likely leading to at least a retest of the broken resistance. BTC/USD Chart – TradingViewBitcoin seems to have completed its correction from profit-taking, possibly paving the way for another bullish month this July. Attention seems to be turning to falling supply, institutional interest, mainstream acceptance, and the “halvening” in May 2020. Fear of missing out among investors might also be sustaining the short-term gains.
According to Anthony Pompliano, Morgan Creek Digital Assets Partner, in an interview with Yahoo Finance:
“I think by the end of 2021 we’ll see it eclipse $100,000. The important thing to remember about bitcoin is that it’s a fixed supply asset and so supply and demand economics apply. If there are increases in demand, you’re going to see the price move up.”
He went on to say that Facebook’s Libra or Calibra wallet could eventually support mainstream cryptocurrencies like bitcoin and ethereum, which could keep the odds in favor of these coins that have already proven their stability over the years versus newer ones. Pompliano predicts that bitcoin could test the all-time highs again and predicts $50,000 to $100,000 over the long run.
Images courtesy of TradingView
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