Bitcoin escaped the $30k to $40k channel that lasted over 70 days in accumulation. Analysts expect the breakout to project $58k over the next couple of months and possibly $100k before 1Q2022.
According to Chingiz Nasirov (Blockster profile page), CEO of Nasirov Venture Capital:
“I believe that the Bitcoin bull market is not over. After a strong bull run, Bitcoin should have corrected by about that. I believe that $28,000 was the bottom.”
Nasirov adds: “If you measure the Bitcoin chart by Fibonacci retracement, you can see that $28,000 to $30,000 is the golden ratio level. After the spectacular price growth in 2013 and in 2017, Bitcoin corrected to the golden section of the Fibonacci before making new highs.”
$50.8k is the First Barrier According to this Analyst
Technical and onchain data analyst @gaah_im draws a bullish chart where a potential $71.6k resistance should emerge once the current $65k all-time high is breached.
Instead of the $50k psychological barrier, @gaah_im explains that $50.8k is more important: “The middle of the Neutral Zone (NZ) has almost been reached, and the price in the short term is inside the lower band of the NZ. When breaking through the center point ($50,800), it should lead to the same bullish pattern seen ahead of the $30,000 to $40,000 channel.”
The analyst also posted some interesting on-chain data, which suggests that the Bitcoin supply cut on exchanges positively impacts BTC price.
According to the above chart, exchanges’ Bitcoin reserves drastically diminished when the critical $37k resistance was breached late July.
Bitcoin deposits stagnated near 2.45 million for the past 31 days, as analyst @gaah_im shows on Twitter:
Data shows both stablecoins reserves increasing to all-time high levels, while 63,000 Bitcoin have been withdrawn over the past month. Thus, there’s reason to believe that the bullish movement is far from peaking.
@gaah_im adds: “The target after the $37,000 breakout is $58,000, as indicated by the expansions since the ‘Reference Channel.’ The supply of Bitcoin, today within the exchanges, is the same as when it traded the asset in the upper range of the ‘Neutral Zone,’ which is now a resistance region.”
Notice how the short sellers’ liquidations spiked above $500 million on July 26, when Bitcoin broke the $37,000 resistance.
Large short-sellers liquidations should continue to occur as Bitcoin breaks the next resistance at $50,800.
@Gaah_im explains, “the next target would be $58,000, two levels above the next ‘Neutral Zone.’ If the bull trend continues, the 50% ‘Reference Channel’ becomes the $65,000 all-time high. The data strongly indicates a continuation of the bullish trend, and technically the short-term pattern should continue as we have seen some major bullish moves being executed in recent weeks.”
Nasirov Paints a Rosy Picture for the Coming Months
Crypto enthusiast and OTC trader Chingiz Nasirov lay out his bullish perspective for the remainder of 2021:
“I can predict that starting in September, bitcoin will begin to grow rapidly and will reach $100,000 at the end of 2021, in the worst case, in the first quarter of 2022.”
When multiple experts point in the same direction, it becomes a self-fulfilling prophecy. With that in mind, traders should brace for a bullish continuation despite potential short-term corrections.
Cryptocurrencies are volatile by nature, as there’s no set methodology for calculating a fair price. To be honest, defining the potential market for Bitcoin, Ethereum, and the remaining altcoins seems an impossible task. The emergence of the decentralized finance (DeFi) sector, for example, began a competition for traditional markets’ fixed-income returns.
While ETH and BTC continue to have their uses, some traders (and institutional investors) have entered this space exclusively to seek yields on stablecoins. Unbeautifully it creates some demand for network fees, but as the competition from Proof-of-Stake emerges this inflow currently focused on Ethereum tends to diminish.
Nevertheless, experts’ opinion seems feasible and could even be ‘modest’ if the U.S. ETF gets approved during that time frame.
