The Bitcoin ($BTC) price is continuing to head skywards, stopping just short of $82,000 in recent trading. With a potential target of $100,000 by the end of the year, will the bulls be able to maintain this current momentum, or is a retracement about due?
Bitcoin bulls not running out of steam yet
Bitcoin’s price surge does not appear to be losing steam. At least not yet. From the lowest, to the highest point last week, $BTC rallied a massive 22%, or $14,650. As far as price spikes go, in U.S. dollar terms, this was simply a gigantic weekly candle, which has no equal in the whole of this bull market up to now.
U.S. Bitcoin ETFs rake in $2 billion in $BTC in only two days
During this explosive move, the U.S. Spot Bitcoin ETFs certainly provided plenty of propulsion, as they took in $2 billion worth of $BTC in just two successive days. On top of this, Blackrock’s IBIT Spot Bitcoin ETF has just surpassed its Gold ETF, with a $33.2 inflow, meaning that institutions are now much preferring $BTC over gold.
It’s not just these ETFs either. Many were jumping on the Bitcoin bandwagon given that it was patently obvious that the escape, and acceleration out of the 8-month long bull flag was now definitive.
Extreme Greed
The Fear and Greed Index has moved to an ‘Extreme Greed’ reading of 76 on Monday, signalling that the market is now probably entering into a FOMO (fear of missing out) stage.
$1.56 billion in shorts not safe at $85,000
One more factor that can potentially add to price momentum going forward, is the fact that there are $1.56 billion in shorts sat at a price of around $85,000. If $BTC hits this price, the resulting liquidations could add more fuel to the fire.
Strong upward thrust, but momentum may have topped
Source: TradingView
The short-term price movement for $BTC shows a strong upward thrust. The bull flag has been left well behind in the rear-view mirror, and the next stage of the bull market has commenced.
Be that as it may, there are some bearish concerns to take into account. All the short-term Stochastic RSI momentum indicators have topped, including the daily, and so some kind of a retracement would perhaps be expected.
Fibonacci extension levels give possible short-term $89,000 target for $BTC
Source: TradingView
The Fibonacci extension levels are excellent for predicting future price levels, and on the daily chart this can be seen clearly. It can be observed that the price has moved through the 1.272 Fibonacci level, and has potentially confirmed above, as long as the price does not fall back through this level by the end of play on Monday.
Above this there is the 1.414 Fibonacci at $83,900, and what is possibly the maximum target level for this particular surge, the 1.618 Fibonacci at $88,900.
If the Bitcoin bulls do reach the exhaustion stage, a return to $76,000 or even $73,000 are possible retracement targets. However, once past the next retracement, the target of $100,000 by Christmas might have to be revised upwards.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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