Bitcoin rallied again on Tuesday, extending yesterday's jaw-dropping breakout higher to north of the $47,000 level as Bitcoin continues to work its way up towards the $50,000 level, a major accomplishment for the nascent asset class. Bitcoin is currently in a bullish breakout higher in uncharted territory with no clear signs of resistance or bearish variables, especially with a looming herd of institutional investors and enormous public companies teeming with huge cash reserves that very well may be pushed into Bitcoin.
(February 9, 2021 7:30PM EST)
Outlook:
Another day another rally for Bitcoin as the digital currency continues to push higher, targeting $50,000 as the immediate-term target, but based on the sentiment, fundamentals, and technicals, it appears all but certain that Bitcoin is going higher, and likely sooner rather than later. If yesterday's Tesla $1.5 billion Bitcoin investment news is an indication of what is yet to come, then we could very well see the likes of the FAANG crowd allocate a 10 figure amount each into Bitcoin for their companies reserves as opposed to the long-term bearish and ever-devaluing US dollar cash reserves currently plaguing many liquid investors. But exactly how high can bitcoin go, and is there any sort of tangible projection?
According to Elliott Wave Theory's typical impulsive wave structures and lengths, it appears Bitcoin may have already completed its initial impulsive Wave 1 higher, rallying from roughly the $10,000 level up to just over $40,000 a few weeks ago. The subsequent ~30% correction which quickly followed, bringing Bitcoin down to just under $29,000 briefly, appears to have been Bitcoin’s W2 correction which has already completed. So where does that leave us now?
Likely at the start of Bitcoins impulsive W3 move higher. Impulsive Wave 3s are notorious for being the longest and most intense market waves in which bears turn into bulls because the trend is so strong. This is also the wave in which the greatest amount of profit is made following the trend. As you can see in the chart below, I have plotted a rough projection of Bitcoin’s long-term wave structure based on Fibonacci extension levels.
If W1 consisted of Bitcoin rallying from $10,000-$42,000, then this is now the start W3; of which wave threes typically measure 1.618 to 2.618 of Wave 1. So, according to those ratios, If this Bitcoin W3 is 1.618 times the length of W1, then W3 would terminate around $94,000.
If Wave 3 was even longer and equal to 2.618 the size of Wave 1, then this W3 would extend all the way up to $126,000 before a significant correction. I tend to be of the opinion that Bitcoin will likely find heavy resistance around the $100,000 level, indicating a W3 top thereabouts, lining up well with a $94,000 W3 termination. It’s important to note that this is purely speculation based on technical indicators and market psychology, however many traders rely on such strategies so they are worth taking note of in your investing and trading pursuits.
Also, it’s important to note that any forecasts or projections in my chart above are purely for the sake of price targets and not timelines or specific dates for these waves to take place.
In traditional markets, gold rose again today, rising up to the $1,850 level before turning around and settling closer to $1,840. This is short-term bullish but gold found resistance at the 50 Day EMA and subsequently formed a bit of a shooting star. Gold needs to break above the 50 Day EMA and resolidify the uptrend else face a continuation of the downtrend back below $1,800. This would be good for the US dollar and possibly a negative factor for Bitcoin, which tends to trade similarly to gold and opposite the USD.
Support: Look for tentative support at the $40K level which, now that we've broken above it as resistance indicates it should now be supportive. Below that, look for support at $35K and then the 50 Day EMA which is north of $31K and climbing.
Resistance: Look for resistance at $50K, then $55K which roughly equates to a $1 trillion market cap for Bitcoin, then $60K, then every $10K until $100K. It's all but certain now: the institutional herd is coming.
If you enjoy these posts, please support the channel by "Tipping" this post below, or using either of these referral links below.
Buy Bitcoin here.
Earn Crypto here.
$94K are you searious?