- Bitcoin crosses the $81k mark, heading to a new psychological milestone as analysts reach divided opinions on the next possible direction.
- A CryptoQuant analyst expects a pullback since 100% of investors are in profit; however, Alan Santana believes that the asset could proceed to $89k in the near term.
Bitcoin (BTC) makes a groundbreaking move to hit a “price discovery phase” at $81k after surging by 17% in the last seven days. Meanwhile, analysts appear to have become divided in terms of its next direction.
According to the CEO of CryptoQuant, 100% of Bitcoin addresses are in profit, which implies that the asset could embark on a significant correction in the near term. Subjecting this to a critical analysis, we looked into the Bitcoin Fear and Greed Index and found that investors’ sentiment had reached an extreme greed level, signaling an overbought. Historically, this usually precedes a bearish reversal triggered by investors who seek to take profit.
Bitcoin Price Analysis
According to our market data, Bitcoin has recorded an extreme level of trading volume and Open Interest. Specifically, the 24-hour volume was up by 64% at press time, with $76 billion changing hands, while its OI had also surged by 4.16% to reach $48.78 billion. Based on our analysts’ interpretation, fresh money is entering the market. Meanwhile, some crypto analysts warn that investors tread with caution. According to them, a retracement below the crucial support range of 75,000 to $76,000 range could see the price falling back to between $70,000 and $72,000.
However, if sustained momentum and continuous buying pressure “drags” Bitcoin’s price above the current resistance level of $81,500, the asset could likely proceed to $82,000 and later reach the $85,000 level. Meanwhile, analysts believe that these levels represent psychological milestones where sellers may be tempted to take profit.
Further exploring other market indicators, we observed that the Average Directional Index (ADX) was showing a reading of 33.14. Any reading above 25 indicates a healthy uptrend and stronger bullish momentum. However, the Money Flow Index (MFI) was approaching the overbought territory with a reading of 71. According to analysts, a reading above 80 indicates an overbought condition and usually signals a short-term pullback.
Predictions by Other Analysts
Joining the Bitcoin direction conversation, a renowned analyst identified as Ali Martinez pointed out a bearish formation which indicates that the asset may fall from a rising wedge. To him, a successful execution of his thesis would see Bitcoin pulling back to $73,900. Meanwhile, analyst PlanB believes that Bitcoin could hit between $250,000 to $1 million.
According to him, this prediction is supported by the original 2019 Stock-to-Flow model.
After the ETF fake-out earlier this year, bitcoin is now ready to take off. The stock-to-flow model predicts a 500k average with 250k-1m bandwidth. Note this is the original 2019 model refitted with 5y new data: same parameters, same results (55k -> 500k -> 4m).
For Alan Santana, the asset could hit $155,599 by May 2025. Reviewing his thesis, we found that his prediction was based on Fibonacci analysis. Santana pointed out that Bitcoin has already surpassed the 1.236 Fibonacci extension line from the previous bull market, falling into a bullish zone. In the immediate term, he expects Bitcoin to hit $89k.
After the $81,500 target immediately we have $89,444 next. This is followed by the much awaited, the much expected $100,000, in this case, 102K. This is the golden ratio and a major resistance level, consider a stop at this point. If Bitcoin is going to rest at some time, anytime while rising, this one should be considered by all the bulls involved.
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