Completely wresting the initiative from the bears, bitcoin is heading back to the $73,800 all-time high. This time, there doesn’t appear to be anything that can stop it.
A raging bull market coming
In previous bull markets bitcoin would reach that stage where the price became parabolic, and those witnessing this talked of a ‘raging’ bull market. Bitcoin could be about to enter into this stage in this current bull market in the not too distant future.
Source: Coingecko/Trading View
Bears had their chance
The bears had their chance over the last couple of weeks since bitcoin made its new all-time high. The candle that printed on the all-time high was a spinning top. These kinds of candles often come at the top or bottom of a trend and show uncertainty in the market.
With other indicators also showing that bitcoin, to all intents and purposes, was looking overbought, this could have been the signal that the uptrend was about to be broken. However, the next candle to print was a hammer, and this signified the opposite to the spinning top. Hammer candles are found at the bottom of downtrends.
Therefore, the inference could be drawn that the 17.5% correction that measured from the top of the spinning top, to the bottom of the hammer candle, was all the correction that we are going to get. This is in line with the 21% correction that took place in January.
New all-time high in sight
Source: Coingecko/Trading View
Zooming into the short term time frame, $BTC is only a little matter of less than 4% away from the all-time high. This could even be reached today. Once there, it might be expected that the price chops around before consolidating a base and moving further into price discovery.
The next target, using the fibonacci extension, is the 1.618, equating to a price of $81,800.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
