Whiplashes of volatility are not uncommon across the crypto landscape and Bitcoin, the reigning king of digital currencies, hasn’t been spared. Its tumultuous journey to overshoot the potent resistance line of $70,000 has been much-storied recently. The task has been complicated further with news of the fallen Mt. Gox exchange, that once carried the banner of Bitcoin trading, commencing payouts to its creditors. This news has fostered a degree of apprehension among investors and spectators alike.
However, a blanket of cautious optimism coats the market; Bernstein, a reputed wealth management firm, is unshaken in its bullish stance on Bitcoin. The firm is not only predicting a robust growth trajectory for the Bitcoin Exchange-Traded Fund (ETF) market but is also projecting an impressive upward shift in BTC’s price targets.
Adding to the positive narrative is the comprehensive technical analysis by The Birb Nest, a well-known trading firm. Its examination casts a spotlight on crucial support levels and discerns a positive slant in market sentiment.
Bitcoin’s story of surmounting the formidable $70,000 resistance might not have unfolded as envisaged, but it’s far from a tale of defeat. The cryptocurrency is indeed positioning itself to potentially outdo its historic high of $73,700 that it touched on March 14, earlier this year. Forecasting trends in the Bitcoin ETF market, Bernstein anticipates it to scale the dramatic heights of a whopping $450 billion. The report casts intriguing predictions, suggesting an inflow exceeding $100 billion into crypto ETFs within a span of two years. This prophecy, if realized, could catalyze an important price drive for BTC, pushing its targeted price to $90,000 by the conclusion of this year and an aspirational cycle peak of $150,000 by 2025.
The comprehensive technical analysis of Bitcoin’s market, orchestrated by The Birb Nest, underscores a series of bullish indicators that hint at possible price acceleration in the long term.
Adding to the buoyant mood, the analysis reveals that the 50-week and 200-week simple moving averages rest at a healthy $43,950 and $35,358 respectively. This data, coupled with the 7-week SPX correlation coefficient standing at an encouraging 0.36, fans the flames of optimism for Bitcoin.
Meanwhile, the measures of the 200-day Bitcoin Production Cost and the 200-day simple moving average support hover at firm levels of $62,580 and $53,516 respectively. While the Relative Strength Index points to a heightened buying interest, the Fear & Greed Index sways heavily in favor of optimism, registering a ‘greedy’ 74. Yet, The Birb Nest has sounded a note of caution, advising against potential overextensions in this rampant optimism.
On the flip-side, The Birb Nest alerts that the Net Unrealized Profit and Loss indicator resides at 0.57. This finding implies that a significant portion of the market is currently profitable, making conditions ripe for increased selling pressure as investors may look to cash in on the profits.
Currently floating at a price of $67,900, Bitcoin reflects a downward shift of 3% from Monday’s rate and the same percentage over the past week. These numbers lay bare Bitcoin’s struggle to hurdle over higher resistance levels of $69,500 and $70,000.
The future course of the digital currency heavily hinges on the bulls as they must maintain the next support levels at $67,000, $66,500, and $63,800. Their task of defending these levels is critical; a slip would threaten the already achieved significant milestone of $60,000.
