The Bitcoin ($BTC) price made a new all-time high, and stopped just short of $104,000 on Wednesday, as the world’s premier cryptocurrency burst through the $100,000 resistance for the first time. Where to next for Bitcoin?
Peter Schiff eats his words
Peter Schiff, economist, gold bug and perennial Bitcoin hater, once said that Bitcoin will never get to $100,000. Today, he is being forced to eat those words, as the king of the cryptocurrencies powered through $100,000 on Wednesday. Schiff even blamed Bitcoin’s meteoric rise on the government, posting on X recently, that it only got to $100,000 “by buying off politicians, and getting in bed with government.”
Schiff may want to take a look at the incredibly strong buying that is coming just from the U.S. Spot Bitcoin ETFs. They bought another $555.8 million worth of Bitcoin on Wednesday. This is not government; it’s institutions and retail.
Schiff’s main argument that Bitcoin is nothing; that it can’t be felt or touched, and therefore it has no intrinsic value; is becoming rather a ‘flat earth’ argument now. We are in the digital age, and therefore it should be expected that value can be extracted from digital constructions.
Bitcoin breaks out and starts forming a pennant
Source: TradingView
The short-term time frame for $BTC shows how the price has burst out of the triangle, has rocketed higher, and how it is now forming a pennant or flag. This is extremely bullish for a continuation of this price pump.
The Fibonacci levels for the high and low of the triangle suggest that the next level to be hit could be at $105,000 at the 1.618 Fibonacci. The 2.618 Fibonacci would potentially be next at $113,500.
Of course, this is all dependent on the bulls keeping this current upside momentum going. If the bears are able to wrest back some kind of control, a return to $100,000 is certainly possible.
Bitcoin 2-week chart a thing of beauty
Source: TradingView
When looking at investing in an asset, it is always best to step right out of the short-term chart and take an eagle’s eye view of the entire picture. Therefore, zooming out into the 2-week chart, one has a spectacular view of Bitcoin.
The above chart really is a thing of beauty. All the price action of this current bull market is just following a classic pattern. It can be seen how the bull market took off to the upside early in 2023, and how it eventually got to the level of the previous bull market top in 2021.
Previous highs are always going to be extremely difficult to break and hold above, and the $69,000 level was no different. This took 36 weeks of sideways price action within a bull flag before a candle could finally open and hold above this level. And what a candle this was. A nearly 40% candle, which equated to $26,400 in price.
Since then, it has been onwards and upwards. With potentially up to around another year left in this cycle, how high the Bitcoin price will eventually go is one for the crystal balls.
A note of caution in RSI
A note of caution can be found in the Relative Strength Index (RSI) at the bottom of the chart. A descending trendline shows that the bulls will need to force the indicator line above, and make a new high. Otherwise, strong bearish divergence comes into play. This is definitely something to keep an eye on.
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.
