As Coronavirus uncertainty continues, a classic rebound occurs, and data gives significant insights in regards to Bitcoin support and resistance levels.
As the new week begins, Bitcoin (BTC) returns at $57,000, appreciation to a late rally that resulted in a significantly stronger weekly closing than many predicted.
Bitcoin crossed $58,000 overnight before consolidating higher, still, up roughly 5.7 percent on the day, making up for last week’s Coronavirus-induced sell-off and price drop.
The future could be full of surprises – coronavirus anxieties are still within, as macro markets suggest before the open, and sellers still have the opportunity of exploiting leveraged optimists on the back of recent gains.
With all on the line and the monthly close coming up in less than 2 days, things might affect Bitcoin’s price this week.
Bitcoin makes a record-breaking comeback.
BTC price action has already bounced back from the brink three days after losing $6,000 in a single daily candle.
BTC/USD came back to a weekly close of $57,300 on Bitstamp in a typical weekend close, avoiding its lowest such as weekly end price in two months.
The gains have since held, with $57,000 remaining the target as of Monday’s filing.
The 21-week exponential moving average (EMA) at $52,500 has offered support as a “time-tested bull market indicator,” according to new research conducted by the popular trader and analyst Rekt Capital.
He summarized, “Strong BTC reaction from the 21-week EMA level.”
Despite reaching local highs of $58,300, Bitcoin is yet to provide a conclusive breakout, with significant resistance at $60,000 remaining unbroken.
All earlier attempts to break through that selling zone since it lost its support status have been met with a resounding rejection.
The increase surprised some, according to data, with liquidations exceeding $300 million in the last 24 hours.
In the meantime, funding rates, which were neutral on Sunday, are rising, signaling a resurgence of optimism about a reliable BTC price comeback — and the risk that entails.
“All it took was a +7% Daily candle to put an end to all anxieties and worries over a fresh BTC Bear Market,” Rekt Capital continued.
When it comes to the monthly close, which is due at the end of Tuesday, he said BTC-USD is “progressing pleasantly.”
Coronavirus and a rematch in March 2020
As the new Coronavirus variety, omicron continues to cut into sentiment, macro markets are expecting a tumultuous start to the week.
Priya Misra, global head of rates strategy at TD Securities, told Bloomberg Monday, “We need some more answers to figure out the impact on GDP.”
Last week was marked by extreme volatility across the board, with Bitcoin and altcoins following equities, oil, and other commodities in a sell-off frenzy.
On Monday’s open, Asian markets are expected to continue the downward trend, with 1-2 percent drops expected at the time of writing.
With Bitcoin on the upswing, any additional shocks to macro structures might derail the newfound euphoria.
Bulls are aiming for a repeat of March 2020, when a cross-crypto rout known as Coronavirus first appeared on the global scene and drove a price spike that surpassed prior highs.
Nonetheless, Bitcoin did not escape unharmed last week, with several well-known figures lining up to mock what they argue is by no means a risk-free investment.
“Being less hazardous doesn’t make Bitcoin safe,” said gold trader Peter Schiff on Friday, predicting that Bitcoin would eventually become “as risky as any altcoin.”
$50,000 reverberates a floor of $30,000
Those worried about a possible correction from current levels don’t have to go far down the BTC price chart.
According to the most recent order book data from analytics provider Material Scientist, a massive purchase wall has formed, keeping the market over $50,000.
The stakes may be high, as some said over the weekend that failure to maintain that level would prompt them to reconsider their position on Bitcoin, but given the sheer quantity of support, this now appears less likely.
On Twitter on Sunday, Material Scientist summarized, “I’m not sure why you’re all so afraid.”
If $50,000 is the new $30,000, the present retracement from all-time highs would be considered minor in comparison to others, such as the roughly 50% drop in May.
Meanwhile, Material Scientists saw something peculiar – the same person that provided support also set the resistance at $70,000.
“Essentially, one actor controls the entire market,” it explained.
$70,000 is thus the pivotal point of aim for bulls hoping to see the bull run continue by the end of Q4 2021.
Three Bitcoin price correlations are approaching their D-Day.
Bitcoin’s performance over the next three weeks will be “extremely telling,” as it makes or breaks some key linkages.
That was the conclusion reached over the weekend by popular Twitter analyst TechDev, as Bitcoin continued to follow in the footsteps of gold since the 1970s.
Despite some volatility anomalies in Bitcoin price action, the strange, even eerie, similarities between BTC-USD in 2020-21 and XAU-USD fifty years ago have persisted.
If the current trend continues, Bitcoin might see a massive price increase, reaching as high as $280,000. The deadline is in the middle of February 2022.
“The gold fractal from the 1970s is now properly aligned and anchored to both the local high and low,” said an update on the situation.
A study of each forecasted phase of Bitcoin’s transformation since September shows that this month has deviated from the expected path. BTC-USD is expected to trade between $70,000 and $110,000 in December.
Aside from gold and its Fibonacci sequences, two more relationships will be tested in the following weeks.
Both of these relate to Bitcoin’s performance in 2017, and both are still accurate as of this writing. If one side wins, the rate and magnitude of price gains will shift proportionately.
A peak of around $150,000 might arise as early as mid-December, or $225,000 as early as mid-February.
“My base case remains Mid-Dec to End-Jan with a 230K top,” TechDev stated.
In response to Global Macro Investor founder Raoul Pal’s appreciation, he emphasized that the next several weeks will be “extremely telling” for all three correlations.
Where will Bitcoin’s “Moonvember” come to an end?
This was once the million-dollar question on everyone’s lips, but now there’s a growing realization that this bull market may take longer to develop than people expected.
Despite this, there is reason to be optimistic in the immediate run.
The majority of over 50,000 respondents in a Twitter poll sponsored by the @Bitcoin account that concluded Monday anticipated that BTC-USD will end November above $60,000.
In the survey, 35 percent chose the highest conceivable price, while another 25.7 percent predicted a November closing price between $55,000 and $60,000.
It’s easy to overlook how far Bitcoin has come in the last twelve months if you don’t zoom out. BTC-USD traded at little under $16,500 last Thanksgiving, according to Cointelegraph, which coincidentally also experienced a brief sell-off.