Bitcoin Trading – Pricing New Highs and the Prediction

Bitcoin Trading- Pricing New Highs in 2021, and Bitcoin price Prediction in 2021 is bullish until we see an intense bearish pressure in the price. Last year, the price action of Bitcoin during the COVID-19 pandemic was strong enough that it may influence institutions to consider a reliable investment alternative.

Moreover, investors were amazed to see how Bitcoin welcomed 2021 by moving above the $40,000 level for the first time. Therefore, the current price action of Bitcoin may provide a trading opportunity with an amazing outcome in 2021.

Bitcoin Pricing New Highs

Bitcoin became noticeable to trades when the price moved to the $20,000 level for the first time in 2017. Later on, the price tried to sustain at this level but failed.
Later on, the price managed to remain stable below the $10,000 level by making it an important event-level.

Therefore, investors were waiting to see how the price reacts on the $10,000 level, and there was no surprising movement until the COVID-19 pandemic.

When the pandemic came, people became aware of their investment, and the global economy falls in danger due to the increase in coronavirus infection and worldwide lockdowns.
People started to “stay at home”, and governments began to provide stimulus programs to overcome the growing situation.

However, in the US, the stimulus program influenced The Fed to print more money to aid the economy. Therefore, investors became scared of a potential recession in the global economic system.

On the other hand, Bitcoin remains stable during that time, and its decentralized nature made it a viable and reliable alternative to typical safe-haven precious metals such as Gold.

As a result, on 27th July 2020, BTC/ US Dollar broke above the $10,000 level with an impulsive bullish pressure and never came to that price level until now.

Bitcoin Price Prediction in 2021

In this section, we’ll look at the possible movement of Bitcoin in 2021 based on Bitcoin technical analysis.

Technical analysis is a process to anticipate the price movement of every trading instrument based on past performance.

Therefore, if we analyze the Bitcoin price from Mid 2020, we can see that the price became very impulsive towards the upside as soon as it broke the $10,000 level.

BTC/USD with $SPX overlay - Weekly 3.5 Year Chart

BTC/USD + $SPX, Weekly (3.5 Years)

Moreover, many institutions started to hold Bitcoin as an investment signalling a positive sign for retail traders. Therefore, the dollar weakness from the stimulus program with the institutions’ involvement in Bitcoin holding may indicate an intense bullish pressure in Bitcoin.

Bitcoin Price Prediction With Ichimoku Kinko Hyo

Based on the Ichimoku Daily chart, the price broke the $10,000 level with Chikou Span’s support. Later on, the price became very corrective but stayed above the Senkou Span B. Therefore, a bullish breakout and a daily close above the Kijun Sen initiated the impulsive bullish pressure that took the price straight to $40,000.

Bitcoin $BTC Ichimoku

Therefore, the price could complete the N wave at $40,000, but the confirmation may come from the price volatility.

If the price becomes more volatile at the $40,000 level, it has a higher possibility to come towards the Kumo Cloud, $31,000 level.

On the other hand, if the price becomes stable above the $40,000 level, we may expect it to test the $50,000 level in the coming days.

However, as we know, the cryptocurrency market is fare more volatile than the traditional financial markets. Therefore, we should focus on trade management carefully in every trade.

Overall, in the Bitcoin Price Prediction in 2021, the outlook is bullish as long as it trades above the Kumo Cloud in the daily chart. On the other hand, a strong bearish daily close below the $20,000 may initiate a bearish pressure towards the $10,000 level.

Bitcoin Price Prediction With Elliott Wave

Bitcoin was very corrective above the $10,000 level during the COVID-19 pandemic in 2020. However, the fresh bullish move started when the price moved above the $12,500 level.

The first wave started from the $12,500 level, where the third wave tested the $40,000 level. However, the completion of the third wave is not confirmed until it makes a corrective 4th wave.

Therefore, the BTC/USD has a possibility to test the $50,000 psychological level before coming back to 50% of the 2nd wave.

Bitcoin $BTC Elliott Wave

Bitcoin $BTC Elliott Wave

Therefore, $40,000- $50,000 is a good profit taking level for any buy trades from the $10,000 area. However, investors should focus on how price reacts on the $50,000 level to anticipate further movement.

As of now, any strong volatility and bullish rejection at the $40,000 or $50,000 area may initiate a corrective 4th wave in the coming days.

Bitcoin Market Context Analysis

According to the market context, an asset should start bearish correction after an impulsive bullish pressure. However, the trend change depends on how the price reacts on a key level or event level. For Bitcoin, the current psychological level is $40,000 and $50,000.

As the price moved above the $10,000 level with an impulsive bullish pressure, a bearish correction is pending. However, the bearish correction may start after a bullish rejection from the $40,000 or $50,000 level.

Therefore, for joining the current bullish trend, investors should wait for the correction to complete.

When the Correction May Complete?

If the Bitcoin price rejects the $40k/ $50k level, it may come towards 50% of the current bullish leg. Later on, any bearish rejection from the dynamic level of 20 EMA in the daily chart may resume the current bullish trend.

Conclusion- Bitcoin Buy Signal for 2021

As of the above discussion, Bitcoin has a higher possibility to show a bearish correction in the coming days. However, based on the current price action, BTC/USD may continue the bullish momentum towards $50,000 level as long as the price is above the $20,000 level.

Therefore, to join the bullish rally, traders should wait for a suitable price reversal point with an appropriate price pattern.

On the other hand, if the price moved below the $20,000 level with a daily close, it may move towards the $10,000 level.

In-house Analyst
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