The cryptocurrency market has gone through another week of consolidation. Recently, most major cryptocurrencies are trading within a very narrow range, trying to find their direction. For example, Bitcoin has fluctuated between US$30,000 and US$38,000 for the past 5 weeks. Obviously, this integration will end sooner or later. But the question is, once Bitcoin exits this range in the second half of the year, in which direction it will continue to move forward.
A recent CNBC poll showed that 44% of institutional investment managers believe that the cryptocurrency market will remain stable in the second half of 2021, and Bitcoin will close at a price of less than $30,000.
Despite this, 25% of respondents believe that Bitcoin will close at about $40,000 this year. A similar proportion of respondents believe that the price of BTC will be $50,000, and only 6% predict that the cryptocurrency will reach $60,000 by the end of the year.
In the recent “What Does Bitcoin Do” podcast, well-known Bitcoin analyst Willy Woo stated that due to the recent adjustments, BTC has not yet entered a bear market. Experts clarified that the amendment is a short-term speculative phase. Woo believes that during this period, most of the coins flowed from “weak hands” to coin holders. This is why, in his opinion, Bitcoin has begun to recover and is preparing to renew its upward trend.
Other cryptocurrency enthusiasts are more active and optimistic about Bitcoin. The head of Celsius Networks, Alex Masinsky, shared with Cointelegraph that the recent historical high of approximately US$64,000 to US$65,000 is not the highest point of BTC in 2021. The cryptocurrency bull market is expected to reach $160,000 by the end of this year.
However, the most positive prediction for Bitcoin comes from Adam Back, the inventor of Hashcash. He envisioned that “all decrees will be returned to zero.” And, this means that Bitcoin has no top and will be infinitely large:
After a week of consolidation, the market started with a slight price correction on Monday. According to Coin360.com, the price of a Bitcoin is 28,929.72 Euros (-3.02%), an Ethereum-1,921.57 Euros (-1.77%), a DOGE-0.2012 Euros (-3.73%), and a UNI ——17.12 Euro (-0.07%):
Now let’s look at the price chart of the major cryptocurrencies against the euro in the most noteworthy time frame.
Bitcoin / Euro
In the weekly chart (1W), BTC/EUR formed a Spinning top Candlestick after hammer Since last week:
This candlestick pattern represents indecision about the future direction of the price. This is why the most likely scenario is that the integration continues.
We believe that BTC/EUR will move at the 360-day moving average (Horse 360) And the 30-day moving average (Horse 30).
immediately, Horse 360 Is at the level of 25,255 euros, and Horse 30 — 29,522 Euros. We believe that the first layer is the key support for Bitcoin, and the second layer is temporary resistance.
In the weekly chart (1W), ETH/EUR has been formed Bullish engulfing:
According to the technical analysis theory, Bullish engulfing It is a popular trend reversal signal that occurs at the bottom of the correction.This is why ETH/EUR may try to return to the market Ascending channel It is increasing in the daily chart:
As can be seen from the chart, ETH/EUR is now testing the downline of the channel. If the price exceeds this line, some aggressive traders will begin to open long positions.
In the 4-hour chart (4H), DOGE/EUR consolidates at the resistance line:
Currently, there is neither a bullish signal that indicates that Dogecoin will try to break through resistance and resume its price increase, nor a bearish signal that the price of cryptocurrency will continue to fall under pressure from the resistance line. This is why we will maintain a “wait and see” position.
Unity / euro
In the weekly chart (1W), UNI/EUR formed a similar Bullish engulfing This increases the chance of a price rebound:
The 4-hour chart (4H) also confirms a potential price rebound-DOGE/EUR is trying to break through the resistance line:
Some very aggressive traders may open long positions. However, these positions are risky-the 11.45 euro support level is much lower than the current 17.17 euro price level. This is why these positions should be small.
This analysis only provides information and does not constitute investment, financial, trading or any other type of advice, and you should not regard any content of Bitvalex as such advice. Bitvalex does not recommend that you buy, sell or hold any cryptocurrency. Before making any investment decision, you are solely responsible for conducting your own due diligence and consulting consultants.