Bitcoin (BTC) has the potential to push its price between $ 250,000 and $ 350,000 by the end of 2021, a long-standing fractal suggests.
The first day Job by the analyst nicknamed Bit Harington, the bullish setup of Bitcoin’s secular price spikes was inspired after each halving when the reward for the mining block was halved. Analysts believe the halving is a bullish event that will reduce the supply of newly mined BTC.
Harington recalled that after the first two halving events in 2012 and 2016, Bitcoin price rose more than 600% as measured by a line known as Resistance / Support (R / S), as shown in the graph.
This line represents a barrier during an uptrend period. Traders tested it for a breakout several times before successfully breaking it to make a new record high. As prices began to correct, they eventually bottomed near the same line.
In the 2020-2021 period, Bitcoin will see a similar upward trend, rising from under $ 4,000 to over $ 60,000. Once again, Harington marks the $ 60,000 level as the same R / S line that is helping keep trades from making a clear bullish breakout.
By the way: From this point of view, there is a “Bitcoin Double Top” after every halving. It’s not really obvious after halving (like the obvious double top after halving), but you can still see that double top in various indicators. Weekly RSI e.g. https://t.co/lopvWPqd3v
– Bit Harington (@bitharington) September 19, 2021
The analyst suggests that Bitcoin will rise above it to rebound to a new record price.
Cointelegraph Markets analyst Michaël van de Poppe responded to Harington’s fractal theory, adding that it should put the price of Bitcoin in a range of $ 250,000 to $ 350,000.
However, he noted that the big bull run could also lead to a brutal correction that could bring Bitcoin price back to $ 65,000, just near Harington’s S / R of $ 60,000.
That makes a lot of sense and fits my vision.
In 2017 we are somewhere. A major breakout will come to ~ $ 250-350k at a later date and then land in the bear market at $ 65,000 #Bitcoin. https://t.co/4XX7aDp2rs
– Michaël van de Poppe (@CryptoMichNL) September 19, 2021
Do the basics match?
Bitcoin has skyrocketed after falling below $ 4,000 in March 2020, largely due to loosening monetary policies from global central banks aiming to contain the economic fallout from the Covid-19 pandemic. The cryptocurrency ended the year at around $ 30,000 as private and institutional investors awoke to their safe haven amid a falling US dollar and rising inflation fears.
So far, Bitcoin price topped around $ 65,000 in 2021 before correcting below $ 50,000. At its annual low (YTD), the pair traded for $ 29,301 on the Coinbase exchange. The losses were spearheaded by the abrupt ban on all crypto activities in China (including mining) and the alarming tweets from Elon Musk about its explosive carbon footprint.
BTC credit on the exchanges falls to new lows
The cryptocurrency kept the price above $ 30,000 as its reserves on the exchanges plummeted.
Blockchain data analytics service CryptoQuant reported that Bitcoin balances on crypto trading platforms fell to around 2.37 million BTC last week, the lowest level in more than a year.
The decline in Bitcoin reserves represents the intent of traders to hold the cryptocurrency instead of trading it for altcoins and fiat.
Bitcoin hash rate almost restored
Bitcoin’s rebound from under $ 30,000 to nearly $ 50,000 also coincided with its V-shaped hashrate rebound.
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For starters, the processing power of the Bitcoin network dropped from 180.66 million TH / s in late May to 84.79 million terahashes per second (TH / s) in early July facilities or relocations abroad.
But the network recovered more than half of the lost hashrate, reaching 136.92 million TH / s on September 18, showing that China’s direct ban has no lasting impact on the bitcoin mining sector.