Buy Bitcoin While It’s Boring? (Weekly Forecast)
Bitcoin rallied a bit last week, rallying to nearly $40K before slipping in concert with another Elon Mark tweet and finishing the weekly candle net-positive around $36K. This is a bullish doji candle as Bitcoin continues to find support at the 50 Week EMA and appears to be consolidating following a massive ~50% selloff.
(June 6, 2021 8:30PM EST)
Bitcoin continues to trade sideways following the massive late-May selloff, finding some footing around the 50 Week EMA around $35K. There has been a lot of FUD lately but fundamentals remain strong and there continues to be a lot of buying volume. We’re approaching an inflection point in which BTC will either rally to a short-term higher high or get rejected and continue lower to retest the lows. When you zoom out, you can see Bitcoin is still in a long-term uptrend and bull market, so we continue to approach this situation with a BTFD strategy. Compared to the current ATH at $65K, Bitcoin is roughly 50% off. If you believe in the commonly-cited Stock-to-Flow Models or Pantera Capital’s price projection, Bitcoin could go another 3–10x from here within the next 6–12 months.
This selloff resembles that off 2013 when Bitcoin had an early-cycle rally to new highs, sold off dramatically, consolidated for a while, and then rallied to exponentially higher highs months later. This is not an uncommon occurrence in markets, especially in crypto, which benefits from volatility as well.
BTFD. Fundamentals have not changed. Daily and even weekly charts will show relatively large corrections; this is standard bull market behavior. Now that another altseason has been spectacularly squashed, this sets us up for another Bitcoin leg up to new highs, likely $75K+ and higher. By nearly every measure, we are nowhere near a top; in fact, we are maybe halfway through this bull market. What do you do during bull markets? Buy. The. Dip.
Support: 50 Week EMA at roughly $33.5K, then 100% fib at $30K.
Resistance: $40K, $45K, then $50K.
Originally published at https://www.publish0x.com.