While much of the financial markets are filled with uncertainty, Bitcoin seems to take advantage of this to continue jumping higher, and does not want to show many signs of fatigue yet, which makes us wonder if it will be time to buy.
Few things are as difficult as accurately forecasting the future price of an asset. However, there are a wide variety of signals that warn us where they are most likely.
All this week Twitter has been filled with interpretations of those signals that are appearing, and others that have been part of the panorama for some time.
Although we cannot know exactly what the behavior will be, we see how the vast majority of analysts converge that the future in the medium and long term is encouraging, in general thanks to a more mature market, institutional buyers, an unstable economic and social condition , and monetary policies never seen before.
This is what some personalities of the ecosystem say
For Adam Back, recognized cypherpunk, he thinks that the mass printing of fiat is rocket fuel, and that comparing the different bull cycles of Bitcoin, the price could be around $ 320,000 in February 2021.
There are many who agree on the momentum that the excessive injection of liquidity may be causing. One of them is CryptoDog, a popular analyst in the ecosystem, who also adds that the blockade due to the increase in COVID-19 cases will be incentivizing stimuli, and as a consequence, more pumping for BTC.
As I mentioned, here what we know are the probabilities, and without a doubt they are currently placed on this side of the scale. The side where there is general instability, and assets that function as a refuge benefiting.
With signals like this, that of a coronavirus advancing mercilessly, we could consider that it is a good time to buy Bitcoin, however we will talk about this later.
Will the expected correction occur?
At the current price, it is reasonable to think that a correction is already healthy, but how deep? Should we go against a historical uptrend as strong as this cryptocurrency? I don’t think so, but of course a possible fall is worth considering.
Another popular crypto analyst Rekt Capital thinks that with the BTC monthly candle closing below $ 13,900, there is certainly room for a correction. But be warned, there aren’t many pullbacks left below $ 13,900 before I definitely break this level.
Alberto Cárdenas, market analyst, predicted quite effectively the reach of $ 14,100, and the possibility that the ceiling that exists in the surrounding area at this level slows the shock wave, one that has just turned 33 weeks, and there is no wave on the BTC chart that is greater than 33 weeks.
Is it time to buy Bitcoin?
From here, we can help you a little more to discover the answer to this question, analyzing the graph of the price of Bitcoin in different timeframes to look for more signals.
In the monthly time frame we observe how in the long term the trend of Bitcoin has been exceptionally bullish.
From that peak reached in 2017, the price began a major correction with a bottom at $ 3,200. Currently, it seems very likely that this corrective period has ended, and the last relevant barrier before a new big momentum is precisely in the area around BTC today, $ 13,880.
The next momentum of the long-term trend will go in search of a new all-time high, and from the chart we are analyzing, that previous one of almost $ 20,000 does not look like it will be an obstacle.
Is it time to buy Bitcoin? The monthly chart tells us yes, as long as you consider protecting yourself for at least $ 8,500; and only if you have a long-term vision.
Be careful, I do not think it is the best time to buy, much less, I will always be in favor of looking for discount prices to enter.
Let’s go down a bit, and see the chart with weekly candles. Here the bulls are also in control. The medium-term trend is bullish, momentum is currently developing, and it could be being hampered by resistance at $ 13,880.
Knowing if the resistance level you are in will be a definitive brake is impossible, but it is likely. In any case, a fall for the moment would only be able to seek demand that will cause a new annual maximum.
In this time frame we observe immediate resistance challenging the price currently at $ 13,880. Crossing will leave the ground free up to $ 16,173. Higher up the next level is $ 18,953.
From this chart, despite the price being bullish, we can see how the momentum is quite developed, and unless you want to take the risk of a possible correction in the next days / week, it is not the best time to buy Bitcoin.
In any case, if you decide to do so, you should protect yourself for at least $ 9,500.
All our publications are informative in nature, so in no case should they be followed as investment advice.