Bitcoin Nears The $100k Mark – Crypto Piece
Crypto Market Going Full Risk-On
Bitcoin has officially hit new ATHs just one week after our previous Crypto Piece titled “Bitcoin New All-Time Highs Coming” (found here).
While the bears were calling for lower throughout the recent multi-month consolidation, Bitcoin held its ground just like we anticipated.
Now, the big question is: what’s next? Let’s take a look…
Bitcoin Analysis
After a clean breakout above the downtrend line + retest of it as support, Bitcoin has skyrocketed to $87k and counting. Additionally, the RSI held a beautiful uptrend during the run-up.
The next key level of resistance should come in around the 1.618 Fibonacci extension of the recent range - $89.1k.
We’ll be looking for topping signals, like bearish RSI divergence, to help time a local top/pullback. But for now, this move has been ruthless to the bears.
Ethereum Analysis
This breakout has also seen break above the $2825 resistance level.
The multi-month basing pattern (highlighted in a rectangle) is a typical Wyckoff Accumulation pattern.For those that aren’t aware of this pattern don’t worry, we’ll post an Educational Piece on it to catch you up to speed. The key is to know that this type of a pattern occurs before big moves up.
Next key resistance for ETH is around $3550 and then $4k.
We’re still confident in our call for new ATHs for Ethereum this cycle and just as a teaser our target lies around $7k. We’ll reveal how we reached that figure in one of the upcoming Crypto Pieces once ETH crosses $4k.
Intermarket Analysis – USD ($DXY)
One noticeable change from an intermarket standpoint has been the rise of Bitcoin alongside a rising Dollar.
This has primarily been because of the Trump victory.
USD: Investors anticipate that Trump's policies, such as tariffs, tax cuts, and deregulation, will stimulate economic growth, thereby strengthening the dollar.
Bitcoin: Trump's pro-crypto stance, including participation in major Bitcoin conferences, has increased confidence in the Crypto market.
However, we are not of the opinion that this will continue for long.
USD ($DXY) has reached its range high with bearish RSI divergence (more about it can be found here).This is a typical signal to get contrarian, which in this case means downside for USD.
We’ll re-assess, if necessary, but for now we strongly believe that USD is in the process of topping soon. If true, then that would be another strong catalyst for further upside on Cryptos.
On-Chain Signals Called The Move
One of the reasons we were confident in our new ATH Bitcoin call even when BTC was at sub-50k was because of this on-chain chart.
It showed that following the 5th Aug panic, new wallets over 1k BTC started loading up aggressively.
Soon after, it showed a record spike, which simply couldn’t be overlooked.
This was a strong indication of big and smart money accumulating BTC, which made us have high conviction in our new ATH call.
In the next section, we have a lot of important data to cover:
1) 2 indicators to help us time the Bitcoin top
2) Bitcoin and Ethereum’s Cycle Forecasts to provide a Timing Edge
3) 3 Crypto-related stocks (Bitcoin Miners) to help us maximize profits in this bull run
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