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Bitcoin Market Analysis – 22.02.2021

Bitcoin’s price has been consistently rallying in the past few weeks, reaching its latest new high of around $58,330 on Feb 21. It’s becoming more exciting, as the next major point of interest is at around $63,000, and this could be reached literally in few days; only if Bitcoin can hold above few key support levels-$47,000-$50,000.

We are in a bull market cycle with massive institutional support. It is fueling the price of Bitcoin to all-time highs. We shouldn’t set-aside the sentiment that emanate from such support, which has been a driven factor to such pump-up rally.

This run is also being driven by the decreasing reserves on exchanges. This is very similar to the end of 2016 when more Bitcoin was withdrawn from exchanges than deposited. These withdrawals mean that people want to hold their Bitcoin for the long term, indicating strong demand.

Meanwhile, the blistering BTC rally has enabled the total cryptocurrency market capitalization to be approaching the $2-trillion mark in this cycle, which many people wouldn’t have expected last year. Indeed, the BTC bull market is in parabolic state, as most investors have been seeing substantial increases in their portfolio sizes.

While Bitcoin is stepping-up, Ethereum and many other Altcoins have been impressive; a sign that, the overall market is healthy. Ethereum just hit an all-time high of $2000 in the last 48 hours.

The BTC daily chart, shows a 92% move without leverage as we can see from the blow-off move. The ongoing rally has a strong floor at the support level-$31,500 and a break-out area at $42,450; automatically turned these two areas into critical areas to hold. As long as BTC sustains above $42,450 area, the uptrend is intact and the massive run is likely to hit $80 in the coming weeks.

The 20-day MA is sloping up in the present cycle high, indicating that bulls still have a lot to offer. If you cannot handle your emotional state in an open position, take some profits off the table. Stay strong, this is all about how you handle your positions and emotional state.

From the cycle point of view, we have the third 60-day cycle that is right translated and surging. The chart shows a 15-30% reversal in every cycle of the last two; so expect such in the present cycle on a short term frame.

Fig.1.Bitcoin: Critical areas to watch: the strong floor at the support level-$31,500 & the break-out area at $42,450.
Source: Paid Content by Peter Brendt and his partners at bitcoin.live

Let’s keep watching the EMA 8 as we still have a long way to go in this bull market.

From the BTC weekly chart, shows a massive vertical run in the last 8 weeks, exceeding the BB and has an excellent volume on the break. Bitcoin has seen a massive rally in the last 8 weeks, adding more green candles in a row to accelerate to all-time highs.

The candles are becoming very vertical. Yes, it might get up to a vertical spike of $80k but we should expect a reversal on a short-term frame. Similar incident happened in 2017. We’re clearing the all-time levels, even though, the cycle count is suggesting a possible short term retracement.

There are two scenarios here: The price may keep going higher and after that, a 4-year cycle decline or we may first have sideways range consolidation on a short-term frame before making another vertical move. After the move, then follows a 4-year cycle decline.

 Fig2. Bitcoin: One of these two scenarios could play out in this bull market. Source: bitcoin.live

Let’s keep it simple and stick with our plan of buying dips until proven otherwise.

🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service


🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service