Bitcoin, 50% increase in 4 weeks
Since the end of July, the financial markets have been anchored in a phase of rather surprising attractiveness for risk, against a backdrop of economic recovery, corporate financial results that far exceed consensus, monetary and fiscal policy. stable in its ultra-expansionism and finally, confidence in the capacity of vaccination to contain the health crisis.
Finally, a set of positive factors that generates a euphoria that seems to completely ignore “the half empty glass”; but this subject is not the subject of this article.
The American stock market indices are making new historical records, the price of the CAC 40 is very close to its historic record of 6950 points, reached in the summer of 2000 at the top of the speculative bubble known as “.com”.
As for the cryptocurrency market, it has returned to its “historic” positive correlation with the equity market, the two asset classes having been evolving in bullish inertia for 3 weeks in an increasing trading volume.
Is all this justified in terms of fundamentals? Here is my very last video analyzing the price of Bitcoin and major cryptocurrencies where I share my opinion:
Bitcoin Technical Analysis: $ 48,000 Pivot
Bitcoin’s price has recovered 50% from its low in the July 20 trading session and bullish technical signals have multiplied. The latest is the overflow of resistance at $ 40,000- $ 42,000, the high part of a range that has lasted for 2 months.
The technical bases for a bullish trend reversal are well present, the rising volume converges with price action and Ether (ETH) is outperforming Bitcoin: a very positive conjunction of market data.
So what about the relaunch of the bull run? The technical “explosiveness” pivot is at $ 48,000, my video above explains the nature of this price point. Crossing this threshold is to trigger a vertical acceleration towards $ 52,000 – $ 58,000, the bearish gap opened last April and the starting point of the 50% drop from the ATH.
As of this writing, the market has not broken through the resistance at $ 48,000, but it is a matter of time in my opinion. In the meantime, the range of $ 44,000 – $ 48,000 may still last.
My bullish market view would be completely invalidated in the event of a reinstatement (break) of the new support at $ 40,000:
Charts of the BTC / EUR pair (weekly data on the left and daily data on the right) – Source: TradingView
Receive a recap of crypto news every Sunday 👌 And that’s it.
What to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliate. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and cannot be held responsible, directly or indirectly, for any damage or loss caused as a result of the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and invest only within the limits of their financial capacity. This article does not constitute investment advice.
About the author: Vincent Ganne
Vincent Ganne is at the same time a manager at TradingView, a market strategist, a technical analyst, a trainer on the stock market and a speaker on BFM Business. With a long experience in the field of analysis, he offers a global approach to financial markets. From a macroeconomic point of view, as well as from a microeconomic point of view. Vincent Ganne also uses many aspects of graphical analysis with the aim of forecasting trends in financial assets over the medium and long term.
All articles by Vincent Ganne.