A low amount of BTC on exchanges makes the long-term outlook encouraging as demand has increased. The current gains are only part of a much more considerable momentum, and the price could head towards new all-time highs.
The cryptocurrency market closed last week, raising more bullish expectations about its future. The following forecast seeks to discover what could happen to the price of Bitcoin soon.
BTC is trading at around USD 55,562 and has accumulated a 15.2% profit in the last week.
There is a Confirmation of the Bullish Forecasts
The rise in the price of Bitcoin confirmed the resumption of the upward trend, which makes analysts more confident.
Two metrics by analyst Minkyu Woo show a similar scenario to when the price of Bitcoin went from USD 20,000 to the all-time high at USD 64,000.
The stablecoins and short-term holders ratio is starting momentum. According to Woo, this could drive the price of Bitcoin up to USD 100,000 before the end of the year.
There is an encouraging long-term outlook as the amount of BTC on exchanges is as low as it was at the start of the 2017 bullish rally.
However, people have deposited far fewer coins in this rally than in the previous one. While less liquid supply is in the markets when demand increases, the price only goes up.
The Forecast According to the Bitcoin Weekly Chart
The weekly chart shows that the price resumed its medium-term trend after reaching support near USD 40,000.
The momentum that is developing may continue to spread even further before making a significant correction.
The target for next week is USD 58,000, resistance that the price of BTC left before the dramatic retracement of the last few months.
By looking at the big picture, it is possible to understand that current earnings are only part of much more considerable momentum. In other words, the price could head towards new all-time highs quite far from the previous one. However, more than a week may be necessary for that to occur.
The Analysis of the Bitcoin Daily Chart
The review of the Bitcoin daily chart allows making a more accurate forecast of its price.
A resistance at USD 55,816 is hampering the rise in the price of the pioneering cryptocurrency. If it breaks through it in the coming hours/days, which is most likely, the runway would then be clear to resistance at USD 58,976. The latter would be the objective for this coming week.
The recent pullback in the price was not healthy enough for the first cryptocurrency on the market. For that reason, there could be a broader correction to USD 52,663 if Bitcoin loses support at USD 53,785. Below that level, the next support is at USD 48,500.
Anyway, the dominant trend of the value of Bitcoin is bullish, but it could suffer a fall. If so, the demand from those who take advantage of low prices will quickly resume the previous direction.
By Alexander Salazar