Bitcoin rallied on Monday to kick off the week, starting low before surging higher to nearly the $50K level before closing the daily candle just underneath. This is a very bullish candle as it appears Bitcoin has not only found support but is exhibiting strength to resume to the upside.
(March 1, 2021 11:30PM EST)
Short-Term:
Bitcoin's short-term weakness appears to have been short-lived as we expected as Bitcoin found quite a bit of support around the $43K - $45K region, or the 50% Fibonacci retracement, much like the January correction which we suspected would be relevant. If Bitcoin can maintain this upward momentum and break above the $50K level, then we are back in bullish territory again. A break above $60K is obviously a bullish sign and a clear road ahead.
Long(er)-Term:
Bitcoin should grind back higher as it begins a larger W3 higher (potential W3 of W3). A conservative measured move of 1.612% of the micro W1 that just terminated around $58K measures up to the 2.272% Fibonacci extension level around $99K. A more aggressive move measuring 2.612% of the recent W1 would send Bitcoin up closer to $125K (literally off my chart above). Bitcoin will likely not only hit our projected price targets but exceed them due to higher than anticipated inflation and government Quantitative Easing on a huge scale, especially starting H2 2021. I think $100K is not only on the table but a high likelihood in late 2021. Even the Stock to Flow Model for Bitcoin is well on track, pointing to a $100K - $200K Bitcoin, and the S2FX model points to a nearly $300K BTC end of this cycle.
Daily Headlines:
Bitcoin's fundamentals have not changed; this is simply a short-term blip that should be bought unless proven otherwise. If you were waiting to buy the dip, now's the time.
Citibank: "Bitcoin is at a tipping point and could become ‘currency of choice’ for global trade"
Goldman Sachs restarts Bitcoin trading desk
CBOE files to list VanEck's Bitcoin ETF
Fidelity: "Bitcoin works as digital gold"
Support:
1st support: $45K.
2nd support: 50% fib around $43,800.
Floor: $40K.
Resistance:
Immediate-term = roughly $60K.
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