Bitcoin prices could undergo an aggressive bull run in the coming sessions, with their upside price targets lurking anywhere between $60,000 and $64,000.
He spotted a fractal pattern. Of late, Bitcoin typically pullbacks after testing the Channel’s upper trendline to test the median line as support. Later, the cryptocurrency breaks bearish towards the Channel’s lower trendline—the so-called “Support Base,” before retracing its move upward to retest the media, this time as resistance.
The TradingShot analyst noted that a successful break above the median line would put Bitcoin en route to testing the Channel’s upper trendline. It could also happen as the cryptocurrency’s Relative Strength Indicator forms higher lows, indicating room for further accumulation on each downside attempt.
“All the parameters suggest that based on that Channel Up, the price has most likely found its medium-term Support,” the analyst wrote. “If the 4H MA50, but more importantly the Channel’s median, break, then an aggressive path may open towards the $60-64k zone.
“However,” he added, “if the price gets rejected on or below the median, the Support base will most likely get tested again where consolidation below the median may follow for around 10 days until it breaks.”
At the core of Bitcoin’s price rally were the US Federal Reserve’s near-zero lending rates and its unlimited bond-buying policy. The dovish programs forced the yields on US Treasury bonds lower, prompting investors to move their capital in far riskier markets.
Hence, BTC/USD boomed, helped further by an adoption spree that saw firms like Tesla, MicroStrategy, Square, and others add billions of dollars worth of BTC into their balance sheets.
“That’s because as yields go on a run, then money will flow into government bonds, which also means the U.S. Dollar Index (DXY),” said Ben Lilly, an independent cryptocurrency analyst. “These two types of flows can hurt bitcoin and crypto, as we saw late last week.”
Bitcoin was trading 16.14 percent lower from its previous record high at this press time.