The bitcoin rate on Thursday for the first time exceeded the level of $ 40,000, after which it quickly fell by $ 2,200. Today, the cryptocurrency is again trying to gain a foothold above the key resistance with a new maximum around $ 41,000.
The filbfilb analyst believes that the constant renewal of highs over the past month is facilitated by the arrival of new types of buyers in the market, but even with them, the growth cannot continue forever.
“Consolidation of bitcoin after unsuccessful attempts to push the price down are getting shorter. Nobody knows how high he can climb. As for the correction, today we only know that corrections are being aggressively bought off. I don’t want to use clichés, but until that changes, the trend is your friend, ”he said.
According to filbfilb, new buyers are adopting an automated trading style as they need to enter the market with large sums of money, which is different from the manual, casual trades in 2017.
“There are clear signs of accumulation algorithms. These algorithms rarely care about price when they need to invest X $ over time period Y, ”he added.
“The entire bull cycle going on now will be much larger than people expecting it to end. As well as the peak of $ 20,000, it turned out to be much higher than what was expected in 2016/2017. This is how markets work, ”writes analyst Michael van de Poppe.
Willie Wu draws attention to the fact that there are almost no levels left on the bitcoin chart that would allow resistance, so analysts can only rely on the Fibonacci extension.
“When there are no historical resistance levels, magic numbers by nature are all we have to identify support and resistance lines. Bitcoin literally goes through an unstoppable price discovery in uncharted territory, ”he said.
As bitcoin moves to new five-digit levels, there are more and more of those who consider the next goal of $ 100,000.
“I expect bitcoin and tech stocks to double again within 6-9 months,” wrote Mercury CEO Immad Akhund. “Obviously, we’re in a bubble fueled by fiscal stimulus measures, low interest rates and ridiculously large free incomes during a pandemic. It may end badly, but enjoy the climb. ”
Venture capitalist Chamat Palihapitiya, who acquired his coins in 2012-2013, in a conversation with CNBC called the cryptocurrency a “rocket ship” that will fly for months and years. He expects bitcoin to consistently break through the $ 100,000, $ 150,000, $ 200,000 and so on levels in the future, but does not give a timeline.
“In what time? I dont know. Five years, ten years, but he goes there. The reason is that our leaders are no longer as reliable and trusted as they once were. Just in case, we really need some kind of insurance that can be kept under the pillow in order to have access to a non-correlating hedge, ”Palihapitiya said.
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