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Bitcoin regains the level of $47000 amid expectations to continue rising
Bitcoin continued to trade around $47,000 in the past 24 hours after falling to a weekly low under $46,400, and it reached a multi-month high above $50,000 on Monday and stayed near that level for a while.
However, the coin was unable to maintain its bullish momentum, and Bitcoin started to sink rather quickly, within hours, it lost the $50,000 level and continued to drop to a daily low of $46,300, since then, it regained some gains and reached the $47,000 level. dollars and traded on it.
However, the market capitalization of Bitcoin is still under $900 billion, but its dominance over alternatives has slightly increased to just over 44%.
Bitcoin may target $96000
The bullish fundamental data related to the chain strongly suggests that the Bitcoin bull market of 2021 is not over yet, with an all-new high expected later this year.
Looking to the future, there are many ways the rest of the current cycle can play out moving forward. Here are two scenarios we expect to execute as long as the technical and series data continue to show strength.
Assuming that the Bitcoin price hits key technical targets on the upside and the on-chain metrics are flashing significant sell signals, the potential for a market top rally will increase exponentially.
Expectations to continue rising
There are expectations that Bitcoin could reach $96K by December 2021. In a base case scenario, the coin will only have to double current prices (around $48,000), which we think is reasonable given the deep supply exhaustion the leading coin is experiencing.
To reach this $96K level, Bitcoin must first press above the key resistance zone between $51.1-$58K.
During this retest of the main resistance, it is necessary to monitor the scales on the chain and check in particular that holders and long-term entities with large quantities of illiquid supplies do not sell.
If no sell signals flash on the chain, this could potentially pave the way for a retest of the current all-time high (~$65,000) set in April 2021.
Once the coin reaches above all-time highs, we can expect a quick move to the upside as bitcoin price enters the price discovery phase, using the 4-year cycle and bitcoin data in the halving event. Halving indicates the possibility of a top eruption sometime in December 2021 if the leading currency continues to follow this pattern.
Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.