Bitcoin managed to reach its all-time high level back in 2017, despite many naysayers. This comeback took almost 3 years, but the price fundamentals show healthy price actions. Why the current price consolidation above USD 19,000 is a good sign for the long run?
Bitcoin Price Forecast – Good technicals paired with good Fundamentals
Back in 2017, Bitcoin price shot up from USD 3,000 in a non-stop uptrend all the way to near the USSD 20,000 price mark, only to crash back, creating an H&S formation, then sliding back to its original price of USD 3,000.
This proves that everything that goes up in price without any explanations, be it Technicals or Fundamentals, must be a “one-time” event, and prices will definitely correct back to the average original price.
This year, Bitcoin managed to grow back from that very same price level (down because of the COVID-19 events back in March 2020), all the way to that previous ATH. Contrary to previous events, this year was full of Tech adoption, Investors’ interest, and Financial Institutions stocking up on that limited supply of the digital resource.
A Triangle Consolidation formed – Where will the breakout be?
In figure 1, we can clearly see a triangle formation, where BTC prices consolidated inside that channel. For BTC to gain an upward momentum, the price should be able to breakout from the top side, increasing volatility, and in turn, reaching the price level of USD 20,000.
Also, a lot of factors may come to play to help push the price up:
- Positive news advancements in the crypto world
- Famous people endorsing cryptos
- More general adoption (financial institutions/masses)
Though in increase “hype” may be bad and cause the price to adjust heavily down, there should be a fine line between positive news and a market pump, for the sole purpose of a higher price
The Cryptomarket as a whole
As of today, the whole cryptomarket is seen consolidating in tandem with BTC prices. This is very normal since most cryptocurrencies shot up in prices recently and are currently at important levels (24H):
1- Bitcoin (BTC) : + 0.8 %
2- Ether (ETH) : + 0.7 %
3- Ripple (XRP) : + 1.73 %
4- Tether (USDT) : 0 %
5- Chainlink (LINK) : + 1.2 %
6- Bitcoin Cash (BCH) : + 1.06 %
7- Litecoin (LTC) : + 3.41 %
8- Cardano (ADA) : + 0.22 %
9- Polkadot (DOT) : + 0.04 %
10- Binance Coin (BNB) : + 0.05 %
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