At the time of writing, Bitcoin is continuing to gain traction as bulls maintain full control of the market. The BTC/USD exchange rate crossed $4,000 for the first time since early January and, in the process, volumes surged to their highest levels in almost a year.
Aggregate data provided by TradingView shows an average Bitcoin price of more than $3,940 as of Tuesday. That’s a gain of 4.2% over the last 24 hours.
It seems BTC/USD is now approaching its 50-day EMA, just below $4,100. At the moment, Bitcoin needs to maintain its strength and to remain above the 20-day EMA. If Bitcoin price holds above $3,700 for the time being, I would expect we have found a new support level.
That’s a really good thing, because new support means new resistance. So far, from a naked-eye analysis, my bet would be around the $3,850 level. This has already proved to be a strong contender when BTC bounced from it six or seven times in a row during Monday and Tuesday.
In other news, the long-term perspective is looking even more bullish, if you ask me.
Bitcoin is still in the “rainbow range”, although it is now touching the lowest blue bar – its last point of defense.
With yesterday’s and today’s price gauge, I would expect the next few days to have quite an effect on the below graph. (This graph is courtesy of Moon Math, which has been maintaining the logarithmic scale calculations since early 2010.)
If the above analysis turns out to be true, we could see Bitcoin reach $10,000 as early as this year.
Awesome news, right?
Plus, if you were wondering how soon a $100,000 BTC price could be achieved, according to the above analysis, this could be as early as late 2020, although the odds favour a more likely outcome closer to 2024. Still, that’s less than five years away.
From a really long-term perspective, assuming the fundamentals hold and we see continued development and adoption of Bitcoin and related technologies (LN, sidechains, DEXs, UX/UI), I argue the likelihood of Bitcoin maintaining its exponential growth against the US dollar is higher than the opposite occurring. After all, while the USD is chained to inflation, we shouldn’t forget Bitcoin is deflationary by nature.
How exactly will price move?
While no one can know for sure, I would bet on a positive long-term trend, with its usual ups and downs!