After an impressive recovery, Bitcoin managed to flip all skeptics and surge back. Many traders expected that Bitcoin prices were going to sink further or even consolidate further around its 30K mark. On the contrary, Bitcoin and the entire cryptocurrency market managed to show great signs of a comeback and rallied back well above the 40K mark. Today, we are witnessing again a price of Bitcoin 50K, and it seems like it is eyeing its previous all-time high price of 65K. Can Bitcoin still go higher? Should you even consider buying Bitcoin at that high price?
Bitcoin Price is outside its Consolidation Zone
Ever since May 2021, prices have tumbled very low and reached a bottom of USD 28,700 from its all-time high price of USD 65,000. Prices started to go lower and entered a downtrend channel. On July 20th, after reaching the bottom for the last time, prices skyrocketed to reach within a week USD 40,000. After a brief correction, prices continued on their uptrend and are almost around the Bitcoin 50K mark.
A confirmation of the end of the downtrend can be clearly seen at the beginning of August 2021, where prices lingered for a brief while before continuing higher in figure 1.
Bitcoin Price Prediction – Can you still Buy Bitcoin Today?
Looking at how BTC prices are increasing along with the critical level it reached, it might be a dangerous move to place a buy order at current prices. In fact, this zone represents a strong resistance, and prices are likely to adjust following this extended uptrend.
Plotting the Fibonacci Retracement can show a potential harsh adjustment towards the USD 45,000 as a first step, and towards the USD 41,800 as a harsher adjustment.
The Crypto Market at a Glance
In the past 7 days, the cryptocurrency market rose and breached the USD 2 Trillion market capitalization. The top gainers are AVAX, AUDIO, and AR. They gained respectively 165%, 90%, and 85%. On the other hand, CEL, BTT, and HOT lost the most, specifically -7% each.
1- Bitcoin (BTC) : + 5.05 %
2- Ether (ETH) : + 0.73 %
3- Cardano (ADA) : + 12.42 %
4- Binance Coin (BNB): + 11.37 %
5- Tether (USDT) : 0 %
6- Ripple (XRP) : + 2.61 %
7- Dogecoin (DOGE) : + 12.47 %
8- Polkadot (DOT): + 26.67 %
9- USD Coin (USDC) : + 0 %
10- Solana (SOL) : + 71.80 % (new comer)
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Rudy Fares
