Bitcoin will soar to $ 73,200 in 2021 and peak there – Top Chartist
Bitcoin has enough fuel to continue its bull run – until its price hits $ 73,000, according to top chartist Alan Masters.
The independent investment advisor shared its bullish outlook for the crypto flagship after studying longer-term charts. In doing so, he found that the BTC / USD monthly charts have been printing TD Sequential signals since November 2016, resulting in bullish rallies every time.
Even on weekly time frames since March 2020, every TD Sequential cycle – where the asset prints eight or nine consecutive candles in the same direction before changing course – has been driving BTC / USD rates up. Masters called the technical indicator a “real deal,” suggesting that its historical accuracy could push the pair towards at least $ 44,000-46,000.
“Bitcoin is clearly on a parabolic course and there are no signs that it will stop,” said the analyst.
Correction and continuation
The charts presented by Masters show Bitcoin in a repeating upward pattern . For example, the weekly highlighted the cryptocurrency’s tendency to correct downward after the eighth or ninth candle was printed as part of its TD sequence.
In doing so, it tested its 21-period moving average as a support. Later the price continued its upward course.
The first such event took place in late May 2020, followed by reruns in August and November. Meanwhile, the pattern was everywhere on the monthly charts. It printed its seventh TD Sequential candle in December 2020, suggesting a bullish continuation through January or February 2021.
“When we look at the volume indicator, we can see that there is clearly room for much more,” said Masters. “The really bullish action has yet to begin.”
Who is buying bitcoin?
Shortly before Master’s analysis, Bitcoin hit another record high this week at $ 29,321. Many traders agreed that the cryptocurrency would soon hit the $ 30,000 milestone – more than 600 percent higher than its mid-March low of $ 3,858.
The main reason behind Bitcoin’s relentless bull run is fear of inflation. Bitcoin bulls have long cited the cryptocurrency as a safe haven against fiat devaluation. Previously ignored, the narrative finally picked up speed against the backdrop of the coronavirus pandemic.
Institutions, family offices, and companies entered the Bitcoin market with the promise that the cryptocurrency would protect their portfolios and reserves against a falling US dollar. Since mid-March, the US dollar index has lost more than 12 percent of its value. Its fall began when the Federal Reserve decided to give the US economy as much monetary stimulus as needed.
The pseudo quantitative easing cut interest rates to near zero. This in turn increased the attractiveness of government bonds, as the yields on short-term bonds fell below zero and on long-term bonds below 1 percent.
That’s lower than the rate of inflation – which means that investors made little money holding cash and bonds.
“Paper money printing will have its own bull run in 2021 and beyond, which is a [strong] bullish signal for Bitcoin and the broader cryptocurrency markets,” said Masters.