Bitcoin (Bitcoin) It is possible to push its price to between US$250,000 and US$350,000 by the end of 2021, as the long-standing fractal indicates.
First spot Written by the pseudonymous analyst Bit Harington, the bullish setting draws inspiration from Bitcoin’s long-term bull market Halved When the miner block reward is halved.Analyst thinks Halving bullish event, Which reduces the supply of newly mined BTC.
Harington reminded that, as measured by the so-called resistance/support (R/S) line, after the first two halving events in 2012 and 2016, the price of Bitcoin soared by more than 600%, as shown in the chart below.
This line represents obstacles during price increases. Traders tested it for multiple breakouts before successfully breaking it to reach new highs. When prices start to correct, they eventually bottom out near the same line.
In 2020-2021, Bitcoin has experienced a similar upward trajectory, starting from Less than US$4,000 to more than US$60,000Harrington once again emphasized the $60,000 level, which is the same R/S line that prevented a clear bullish breakout from the trading record.
By the way: From this perspective, there will be a “Bitcoin Double Top” after each halving. 2 It is not very obvious after the halving (just like the obvious double top after the 1 halving), but you can still see this double top in various indicators. For example, weekly RSI:https://t.co/lopvWPqd3v
— Bitharington (@bitharington) September 19, 2021
The analyst hinted that Bitcoin will break through it to soar to a new record price level.
Cointelegraph Markets analyst Michaël van de Poppe reacted to Harington’s fractal theory and added that this would cause the Bitcoin price to reach the $250,000-350,000 range.
However, he pointed out that a massive increase could also trigger a cruel correction, pushing the Bitcoin price back to $65,000, which is close to Harrington’s S/R level of $60,000.
This makes sense, and it is in line with my thoughts.
— Michaël van de Poppe (@CryptoMichNL) September 19, 2021
Are the fundamentals consistent?
Bitcoin soared after falling below $4,000 in March 2020, mainly due to the global central bank’s Loose monetary policy To contain the economic consequences of the Covid-19 pandemic. As retail and institutional investors are aware of their safe-haven claims against the depreciation of the U.S. dollar and rising inflation concerns, the cryptocurrency closed at around $30,000 this year.
As of 2021, the price of Bitcoin has exceeded approximately $65,000 before then Amend less than 50,000 USD. At the year-to-date (YTD) low, the currency pair traded on the Coinbase exchange at $29,301. Its loss was caused by China’s sudden ban on all cryptocurrency activities (including mining) and Elon Musk’s amazing tweets about Bitcoin’s booming carbon footprint.
The exchange’s BTC balance fell to a new low
Due to the sharp drop in its reserves on the exchange, the price of the cryptocurrency remained above $30,000.
The blockchain data analysis service CryptoQuant reported that the balance of Bitcoin on the encrypted trading platform fell to around 2.37 million Bitcoins last week, the lowest level in more than a year.
The decrease in Bitcoin reserves means that traders intend to hold cryptocurrencies instead of trading them as altcoins and fiat currencies.
Bitcoin computing power almost recovered
Bitcoin’s rebound from below $30,000 to nearly $50,000 also coincided with the recovery of its V-shaped hash rate.
For the uninitiated, the computing power of the Bitcoin network plummeted from 180.66 million terahertz per second in late May to 84.79 million terahertz per second (TH/s) in early July. This decline has surfaced as many miners respond to China’s cryptocurrency blow by closing their facilities or transferring their operations abroad.
However, the network recovered more than half of the lost computing power, reaching 136.92 million TH/s on September 18, indicating that China’s direct ban has not had a long-term impact on the Bitcoin mining industry.
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