Bitcoin price against the US Dollar (BTC/USD) is continuing the momentum and has yet again delighted the Bitcoiners by breaking the psychological resistance at the US$30,000 level. The current momentum is so high that it is continually making new all-time highs. At the time of writing this news, the Bitcoin price was hovering around US$32,061.94 with a 24-hour % change of 9.59%.
The BTC/USD pair not only tested the US$31,609 technical resistance but went on to blast through the US$32,300 level. Nik Patel, a trader, and a technical analyst said that in the near term, Bitcoin (BTC) will reach the US$47,000 level. While explaining the potential scenario of the Bitcoin’s price movement, he said the BTC price will first reach the US$47,000 level, then correct by 39% to the US$29,000 level, and then again restart the bullish rally.
Nik went on to say: “Potential scenario if price plays out like the previous cycle, Broke straight through the 1.618 extensions into 2.618 at $3k before finding resistance, which would be $47k now (confluence with $1trn market cap). 39% drop from there would take us back to $29k before the moon.”
Another renowned full-time trader at the Amsterdam Stock Exchange, Michael van de Poppe, said that even above the US$30,000 level, Bitcoin is not overvalued. While rejecting the apprehension of many people about Bitcoin’s overvaluation at the US$30,000-level, he said: “$30,000 reached, while many people are still arguing that #Bitcoin is overvalued. It’s not and this year will show the actual strength of $BTC. Good part; $ETH is also showing indications of strength as it reached a new high. A great year for crypto.”
Crypto analysts believe that many institutional investors such as Guggenheim Investors (a global investment and advisory firm having more than US$295-billion in assets under management) are still sitting on the sidelines to gain exposure to Bitcoin.
A pseudonymous analyst noted that: “As BTC nears 30k, Guggenheim is still not effective with the SEC. That means they’ve been on the sidelines this entire run. This must be very frustrating, having identified BTC as a potential investment much lower, then doing all the internal research. They’re not alone.”
The technical chart shows that the expected resistance levels ahead are at US$34,446.27 and US$35,300 levels. The supports are at US$30,242.29, US$29,388.13, and US$28,697.78 levels.