Bitcoin Weekly Update
For over a month, Bitcoin faced resistance around the $38,500 mark, with substantial support resting at the Moving Average MA20 around $36,800. The past 30 days have witnessed significant sideways and choppy movement with plenty of Stop Loss hunts towards both upside and downside. Following a breakout above $38,500, we could probably anticipate higher targets, provided, $38.5k holds strongly as support. Expect targets in the 40-42k range in the shorter to mid-term but trade or invest with caution. The breakout above $38.5k marks Bitcoin entering stage two with a possibility of another rally, followed by more choppy action between $38.5k and $48k. A breakout above $48k before the halving next year of another bull run. This is still a a low chance probablity though.
In May, when BTC was at $26k, the target of $37.5k was predicted by many punters. Initially, it was suggested as a direct pump, but later, a correction forecasted a dip to $23k before reaching $37-38k, which resulted in a lot of banter in erstwhile twitter about who is right or wrong. Despite this, bitcoin has still be strong towards the upside so far.
There is a possibility that Bitcoin is gearing up for the impending bull run, with MA20 serving as robust support, evident in November’s bounces. Strong volume in spot buyers, along with possible institutional intervention over $200m in BTC longs, suggests a significant development. Large whale wallets are accumulating more Bitcoin daily, alongside Tether-linked wallets making substantial purchases. The recent weekend pump propelled us into the second phase of a rally. Confirmation requires sustained daily closes above the $38,500 resistance, signalling the start of the second confirmed rally.
It’s crucial to remember that chances of a true bull market has not yet commenced, and a notable 20-30% correction may occur at the $47-48k range within the second pre-bull area, mirroring the pattern of the 2020-2021 bull market.
This week lacks significant events on the calendar. We will keep you updated and posted in a TIMELY Manner with fresh and minty news.
Stay Tuned. get HEALTHY, get WEALTHY and be WISE!!!
