Fractal analyst claims that bitcoin will reach the $65,000 region in April as it currently breached through a new ATH of $52K so let’s read more in our latest Bitcoin news.
TradingShot, the trading management company and a fractal analyst claims in a note to his followers that the BTC/USD pair will hit $65,000 by April and if this trend persists, the pair could extend its upside move to even $70,000 in a few months. At the core of the analysis, there’s a Fibonacci Channel that was quite instrumental in predicting the BTC price patterns in 2020 as the company applied the same forecasting model to try and determine the next potential move of the cryptocurrency which comes to analogies that seem overly bullish.
Bitcoin tends to move inside the Fib Channel ranges which act as support and resistances so with the analysis, these ranges are drawn using the 0, 0.382, 0.5, and 0.618 lines which all run parallel to each other for the upside. The FIB channel structure showed a BTC closing weekly candle above the 1.618 extension line which pointed to two new potential scenarios. The first scenario discussed the prospects of the new rally to the 2.0 extension line while the second focused on a new correction low to 1.618 and 1.382 zones.
The 2.0 Fib extension is set at $70K while on the other hand, the 1.618 and 1.382 zone represents the area between $50K and $35K. Tradingshot added that even with the downside retracement being able to allow traders to purchase the BTC dip, based on the similar sentimental behavior following the bearish move in December:
“Right now, the model suggests that since BTC/USD closed one 1W candle above the 1.618-Fibonacci extension, it will move forward to test the 2.0 Fib ext.”
The reason is the very same historical price action so when the 0.618 gets rejected and the price remains within the 0.382 and 0.628 zones, it will rebound to 1.0 interval as the company added. Bitcoin’s latest price boom above $50K appeared after the many encouraging news from Wall Street. Tesla revealed that it holds $1.5 billion in BTC in its balance sheets while Microstrategy increased its BTC reserves to 71,079 BTC. According to the press release published a few days ago, the intelligence company plans to add an additional $600 million from convertible notes to purchase more BTC. The announcement was quite instrumental in pushing the BTC/USD rate above $50K.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]