Bloomberg: Bitcoin to Reach at Least $100k This Year – Analysis, 8 Mar
Last week, on Thursday, Bloomberg released their March 2021 report on Bitcoin. In their report, Bloomberg outlined that Bitcoin is already transitioning from a speculative risk asset to a global digital store-of-value. The financial media company highlighted that many investors had started replacing gold with Bitcoin in their portfolios. That is why Bloomberg expects the cryptocurrency's price to reach at least $100,000 later this year.
Interestingly, the longer-term price predictions within the crypto community are even much more optimistic. In a recent interview on Bloomberg, Kraken Exchange co-founder and CEO Jesse Powell said Bitcoin could reach $1 million in the next 5 to 10 years and become the leading global currency, displacing the dollar, the euro, etc.
The news relating to Bitcoin is not the only hot topic in the crypto world nowadays. A new sub ecosystem of the cryptocurrency world has started to emerge: namely, the Non-Fungible Tokens (NFTs) or, in other words, the industry of digital art. Because the prices of some NFTs have recorded a 50x or even 100x increase recently, many people have started to join the NFT hype. Even Twitter founder Jack Dorsey decided to organize an auction and sell his first tweet as an NFT:
The highest bid so far has been given by TRON's Justin Sun:
$2 million for a tokenized version of the very first message on Twitter is a signal indicating that the NFT hype is not going to end any time soon.
Last week the correction in the cryptocurrency market ended, and during the weekend, the bulls were even able to push the prices of the major cryptocurrencies up. The Monday market starts with a continuation of the price increase. At the time of writing, according to Coin360.com, one Bitcoin costs €42,147.50 (+1.52%), one Ethereum – €1,447.93 (+3.73%), and one LINK – €24.45 (+2.12%):
Source: Coin360.com (Daily crypto market performance)
Now let us have a look at the price charts of the leading cryptocurrencies against the euro.
In the weekly chart (1W), after the Three White Soldiers (bullish candlestick formation), BTC/EUR formed a Bearish Engulfing (bearish candlestick formation):
Theoretically, the Bearish Engulfing is a potential trend reversal pattern that usually forms at the top of an uptrend. However, the bearish signal was not confirmed in the subsequent week because, after the bearish candlestick, a bullish one formed.
That is why we remain bullish on Bitcoin. Moreover, in one of our previous analyses, we outlined the bullish candlestick formation Three White Soldiers and mentioned that the price of Bitcoin might first drop to the 30-day Moving Average (30 MA) in the daily chart (1D) before it resumed the uptrend.
Right now, the price of Bitcoin is at the 30 MA in the daily chart (1D):
As can be seen from the chart, BTC/EUR went through a similar situation during the previous dip: it consolidated for some time at the 30 MA and then the uptrend renewed. Something very similar will probably happen now: the price of the cryptocurrency may consolidate at the 30 MA and resume the uptrend very soon.
Keep in mind it is better to spot the entry point for a long trade in the 4-hour chart (4H). In the 4-hour chart, BTC/EUR has formed a Bullish Flag:
Theoretically, the Bullish Flag is a typical trend continuation pattern. That's why it is highly probable the price chart will exit the flag in an upward direction.
The right moment to enter the market and open a long trade will be once the price chart of Bitcoin exits the flag.
This past week, the price of Ethereum rebounded, and the price chart of ETH/EUR formed a bullish candlestick after the bearish candlestick of the previous week in the weekly time frame (1W):
Interestingly, the closing price of the bullish candlestick was able to surpass the mid-point (middle) of the bearish candlestick, thereby trying to revoke the bearish sentiment.
Moreover, in the 4-hour chart (4H) of ETH/EUR, it seems that the correction ended, and the price of the cryptocurrency is trying to return into the trajectory of the Ascending channel (uptrend):
As can be seen from the chart at the moment, ETH/EUR is at the lower line of the channel and at the same time at the 30-day Moving Average (30 MA).
We think that if ETH/EUR surpasses the 30 MA and enters the channel in the next couple of days, then the uptrend may resume. In this case, many traders will start to open long trades. Traders will set their take-profits (TP) approximately at the level of the previous local high or €1,670 for one digital coin. They will set their stop-losses (SL) slightly below the recent local low that is approximately at the level of €1,080 per one digital coin.
In the 4-hour time frame (4H), LINK/EUR has formed a Bullish Flag:
As already mentioned earlier, the Bullish Flag is a typical continuation chart pattern that facilitates an extension of the uptrend.
Let us explain in detail how to trade the Bull Flag pattern.
First, the price chart should exit the flag and form a local high outside the flag (1). Conservative traders will wait for a subsequent price pullback (2). If during the pullback the price chart does not enter the flag but rebounds from the upper line of the flag (3), the traders will start to prepare to enter the market. Once the price chart surpasses the level of the previous local high (4), the traders will start opening long trades.
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The analysis is purely informational and does not constitute investment, financial, trading, or any other sort of advice and you should not treat any of Bitvalex's content as such. Bitvalex does not recommend that any cryptocurrency should be bought, sold, or held by you. You are solely responsible to conduct your own due diligence and consult an advisor before making any investment decisions.