Bitcoin is in the middle of a huge bull run, and many people are expecting this movement to continue for a few more weeks, generating new all-time highs.
But, just how high will it go? With no pullbacks or retracement, this movement will fizzle out eventually, crashing back down to Earth with an almighty bang.
Bitcoin is in an ascending channel, but it’s currently sat at the lower end. If it drops out, we could see Bitcoin fall. Or, we could see it bounce, but which will happen?
Bitcoin is in an ascending channel, but will it drop out and dip?
The Case for the Dip
As much as we’d love to see Bitcoin crack on and make its way to new all-time highs, there’s an overwhelming amount of evidence pointing to this not being the push.
There has been very little retracement to cement positions and create decent support levels along the way, meaning any dip could see Bitcoin crash significantly in a short space of time.
Additionally, this whole move has been fueled by FOMO and greed owing to the fact no real news has emerged about Bitcoin in the past few weeks.
The US elections may have had a slight impact, but there’s no way it has this much control over Bitcoin’s meteoric price rise.
If Bitcoin breaks out of the ascending channel that it’s been in for a few weeks, we will likely see it collapse to $17,600 at first, with the possibility for losses to extend all the way down to around $15,500.
The Case for the Pump
We all know that Bitcoin needs to have slight pullbacks and retracement steps, and this could very well be it.
As long as Bitcoin doesn’t smash through the floor of the ascending channel at $18,180, then it should bounce off and continue upwards.
If it can then break through the resistance at around $18,600, then we will likely see Bitcoin make another push for fresh all-time highs, with an assault on $19,400.
If Bitcoin manages to overcome both these obstacles, there’s no reason why we shouldn’t be able to see Bitcoin carry on its epic pump.
But, there’s a lot more for it to overcome than there is to prop it up, especially with all the FOMO and weak hands in the market right now.
So, if we had to place a bet, this week we’d be shorting Bitcoin and getting ready to buy more BTC up between $17,600 and $15,500.
When Will it All End?
Finally, we come to the million-dollar question – when will all of this end and when will Bitcoin become really cheap again?
Well, the answer to that is a little harder to answer, and if we knew the answer, we doubt that we’d even be writing this right now for our butlers would be serving breakfast on our superyacht.
We’ve been saying for some time that Bitcoin looks primed for a $19,000 January 2021, and that’s just around the corner now.
We’re so close to this price target and it’s not even December yet, but the charts are still looking promising for that push.
This lends us to the dip argument, as we know that Bitcoin will need a little rest and money will need some time to accumulate.
So, for the short-term, we’re fully expecting a slight dip down, but Bitcoin will come roaring back over the next few weeks.
As for the grand finale of this bull run, that’s anyone’s guess as FOMO could drive Bitcoin to $50,000 and beyond – it all depends how much the mainstream media covers it and how much your average joe decides to FOMO!
Whatever you do, just make sure you’re smart about it and set your stop losses…
Leave a Reply