BTC Hit A New ATH, Where Will It Head To?

Last week, Bitcoin price reached a new all-time high to $66,970,  However, even though the breakout of resistance was strong enough, the profit taking by many trailers and investors eventually dragged Bitcoin down to south again. And now BTC price is practically in the same place where it was a week ago, holding a strong support at around $60,431.

 

Fundamentally, there are two reasons for BTC price rising. The first is the launch of Bitcoin ETFs (Exchange Traded Funds).The US Securities and Exchange Commission (SEC) approved an ETF based on Bitcoin futures from ProShares, followed by approval of an application to launch a similar ETF from VanEck.

 

The second and main reason for the bullish trend was investor concern about inflation. JPMorgan’s expert Chase noted that recently, real gold, unlike digital gold, has hardly responded to inflationary concerns. This signals a resurgence of Bitcoin's role as the best investment protection tool and supports a bullish outlook for BTC for the rest of the year.

 

Many other analysts are optimistic about the dynamics of the Bitcoin  until the end of December. But at the same time, they urge investors to be extremely careful in early 2022, as the big four-year BTC cycle is nearing completion.

 

As for the technical forecast for the coming week, the correction in BTC price is likely to last in the coming days, and possibly even drag on for weeks.


On the weekly chart, after having reached a new peak, BTC price reversed and almost reached the nearest support level in the $58,000- $60,000 zone. Such a return to the level is quite natural, and if there are enough buyers now, there will be a rebound from the level of the current support and the continuation of the bullish rally.


The histogram of the MACD indicator does not yet indicate the end of the bullish movement, same as the RSI indicator. Despite the strong increase in the price, has not even reached the oversold level, which means that the price still has room to rise.

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On the daily price chart. We see that having broken through the upper border of the ascending channel, BTC price went beyond its limit last week. Now it has again approached the channel resistance level, from where a rebound is possible. With the Fibonacci indicator, we see that BTC may retrace to 23.6% also indicates the $ 58,000-60,000 zone.


However, if there are not enough buyers here, then the Bitcoin correction may continue, then the next Fibonacci level of 38.2% may be in the $52,000- $53,000 zone. The same zone is indicated by the horizontal support level, both on the daily and weekly charts, and this zone is also the middle of the ascending channel. Moreover, the indicators in the daily chart are still on the side of the bears, which means that the correction may reach the second support level. Thus, the signal lines of the MACD indicator formed a death cross, and the histogram is preparing to move from a zone above zero to a negative one.


The signal line of the RSI indicator, having reached the overbought level, also crossed the resistance level from top to bottom and continues to move in the south. Zones of possible correction can be considered as zones of possible purchases. More aggressive traders can place a long order at correction level 1, while more conservative traders can wait and trade in correction level 2.

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