Bitcoin Price Will Top Out At $73,200 in 2021, Claims Analyst - OhNo WTF Crypto

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Bitcoin Price Will Top Out At $73,200 in 2021, Claims Analyst

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Bitcoin has enough fuel to continue its bull run until its price hits $73,000 next year, as per chartist Alan Masters.

The independent investment consultant shared his bullish outlook for the flagship cryptocurrency after studying its longer-timeframe charts. He noted that BTC/USD monthly charts printed TD Sequential signals since November 2016, resulting in bullish rallies each time.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin monthly setup using the TD Sequential indicator. Source: BTCUSD on TradingView.com

Even on weekly timeframes since March 2020, each of the TD Sequential cycle—wherein the asset prints eight or nine consecutive candles before in the same direction before changing its course—led the BTC/USD exchange rates higher. Mr. Masters called the technical indicator a “real deal,” suggesting that its historical accuracy could at least push the pair towards $44,000-46,000.

“Bitcoin is clearly having a parabolic run and there are no signs of it stopping,” the analyst stressed.

Correction and Continuation

The charts put forth by Mr. Masters showed Bitcoin in a repetitive upside pattern. For instance, the weekly one highlighted the cryptocurrency’s tendency to correct lower after printing the eighth or ninth candle as part of its TD Sequence. In doing so, it tested its 21-period moving average as support. Later, the price continued its course to the upside.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

TD Sequence and 21-EMA setup on Bitcoin’s weekly timeframe. Source: BTCUSD on TradingView.com

The first such instance happened in late May 2020, followed by repetition in August and November. Meanwhile, on the monthly charts, the pattern was visible all over the place. It printed its seventh TD Sequential candle in December 2020, pointing to a bullish continuation until January or February 2021.

“When we look at the volume indicator, we can see that there is clearly room for so much more,” added Mr. Masters. “The real bullish action is yet to start.”

Who is Buying Bitcoin?

Mr. Masters’s analysis appeared as Bitcoin achieved yet another record high level this week at $29,321. Many traders agreed that the cryptocurrency would soon touch the $30,000-milestone, thus eventually finishing more than 600 percent higher from its mid-March low of $3,858.

The core reason behind Bitcoin’s relentless bull run is a fear of inflation. Bitcoin bulls have long dictated the cryptocurrency as a safe-haven against fiat depreciation, citing its verifiable scarcity as one major influence. Earlier ignored, the narrative eventually picked momentum against the backdrop of the coronavirus pandemic.

Institutions, family offices, and corporations entered the Bitcoin market to promise that the cryptocurrency would protect their portfolios and reserves against a falling US dollar. Since mid-March, the US dollar index lost more than 12 percent of its value. Its fall occurred as the Federal Reserve decided to provide as much monetary stimulus as required for the US economy.

The pseudo-quantitative easing reduced interest rates to near-zero. In turn, that lifted the government bonds’ investment appeal, with the yields on short-term notes dropping to below zero and the long-dated ones below 1 percent. That is lower than the inflation rate, which means investors earned meagerly by holding cash and bonds.

“The fiat printing will go on its own bull run in 2021 and beyond, which is a [powerful] bullish signal for Bitcoin and the entire cryptocurrency markets,” asserted Mr. Masters.



OhNoCryptocurrency via https://www.ohnocrypto.com/ @Yashu Gola, @Khareem Sudlow