- Yesterday’s Bitcoin price prediction proven right as bulls take out $13,500 resistance
- A fresh new 2020 high of $13,864 shows bulls are all set to cross $14,000 soon
- Minor correction to $12,890 was swiftly handled by bulls to support at $13,150
Bitcoin price prediction – Bulls ready for next leg up after healthy correction
Bitcoin price prediction moved back from a bullish territory after suffering from a 4 percent decline in the past 24 hours. However, bulls seem unfazed by the recent correction since it comes touching fresh new yearly highs, and minor correction in BTC/USD price was warranted.
In the past 35 days, the Bitcoin price has jumped by a whopping 36% after entering a strong bullish phase. Both day traders and institutional demand has bought new yearly highs on the BTC/USD chart. Also, the upcoming US Presidential elections have created a hedging situation in both traditional crypto markets alike.
Bitcoin price in the last 4-hours – Minor correction swiftly tackled by the bulls near $13,150
Today’s minor correction of 4 percent is unlikely to culminate into a significant setback for the bulls. A long bullish Bitcoin price prediction wave warrants a healthy correction to continue its march upwards. The price touched a new 2020 high of $13,864 before profit booking brought it down to $12,892, where bulls immediately sprung into action to hold the $13,000 support. Today’s high also completed the July 2019 rally’s top to encircle the Fibonacci retracements.
The quick recovery by BTC/USD to touch $13,180 shows the pair’s resilience. The bullish Bitcoin price prediction momentum is well maintained by the traders, BTC whales, and institutional demand. As the pair stages a new breakout, the surge to 0.618 Fibonacci retracements located at the $13,350 level shows the pair is well supported at higher support levels.
On the contrary, if the pair is repeatedly rejected from the $13,600 level, it can build a double top bearish pattern on the hourly charts. Such confirmation can plummet the price to the $12,800 level. The relative decrease in volume shows the liquidity is now slowly exiting the market. If the volume touches $400 billion, traders can look to create more fresh long positions.
BTC/USD 4-hour chart – Bitcoin price quickly recovers to trade above $13,150 support
The hourly timeframe is showing a bullish bias even after a 4 percent correction in the past 24 hours. The bullish flag pattern continues on the 4-hour chart as the price has not broken beyond the Bollinger Bands.
The up-trending moving averages have also paused near the middle of the Bollinger Bands. Also, the median lines are flat on the smaller hourly timeframes. Currently, Bitcoin price prediction is above the flag pattern, and if it continues its trajectory, higher $14,000 levels are in sight.
Despite the strong bullish wave underneath, the traders face strong selling activity near the $13,400 level. Price has been rejected twice from upper levels, and it remains to be seen if the price closes above this crucial level. If bears are able to hold $13,400 resistance, a swift selling phase can bring the price back to the $12,910 region. The EMA at $13,070 won’t be able to hold the price if selling intensifies.
The double top appearance can complicate the situation for bullish Bitcoin price prediction. The 4-hour BTC/USD chart is currently in the consolidating phase after rejection from $13,864. The selling momentum above the flag pattern can shoot the price down towards $12,570 territory. Further breakdown to lower support levels is unlikely provided the macro stage doesn’t crumble.
The reading from ‘Relative Strength Indicator’ shows that BTC prices have room for moving upward. Still, RSI indicates a minor weakening of the uptrend. Unless large buying begins, bears will be looking to bring Bitcoin price prediction into negative territory soon.
HODLing and exchange inflows can impact further upmove
Bitcoin is known to move in cycles, and the same is evident throughout its lifetime charts. From block reward halving to macro developments, the price action can be attributed to cyclic movements. This year’s halving event was similar to 2017’s event. Analysts believe that the similarity further signals that the pair can hit $20,000 by march next year.
Although the journey to $20,000 won’t be smooth. The medium-term outlook can turn bumpy, and the BTC/USD pair can witness some minor corrections. As the price rises, HODLers will try to accumulate more BTC’s, which can lead to lower exchange inflows. Before HODLers begin selling, the price can enter a consolidation phase, which can last many months.
Also, traders must also keep an eye on exchange inflows. Typically, large players move their coins to exchanges before selling intensifies. For example, whales exhibit this behavior where they have to shift their BTC assets to the exchanges to take part in bearish rallies. On the other hand, bullish BTC movements tend to have lower exchange inflows.
Bitcoin price prediction – Bulls defend $13,150 to start new accumulation phase
The current rally took the BTC/USD price to $13,864. The overbought technical indicators warranted a cooling leg to begin the next leg up. The healthy correction was minor since the bulls immediately entered a $12,890 region to bring the price back above $13,150 support.
Considerable demand from institutional clients and BTC whales reflects the underlying strength of this current rally. Trading volume has not declined significantly, meaning there’s still fuel left. The declining US dollar will further support the bulls this week. There’s no negative macro news in the sight to affect the price adversely. Thus, Bitcoin price prediction remains firmly entrenched in the bullish territory.
Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.