In our last Bitcoin Price outlook article, We mentioned Bitcoin price to reach 6000$ in 2nd or 3rd week of May. We are currently in the 2nd week and Price has already breached 6000$. Now, what next? Let’s find out.
Bitcoin is about to break above 100 weekly Moving Average
BTC/USD weekly chart(Bitstamp)
Bitcoin weekly chart is looking Bullish, Price recently broke above 55 weekly MA and currently approaching 100 weekly MA. As long 55 weekly MA remains as support, Price could break above 100 weekly MA which is at around 6500$. Price is also approaching 0.382 FIB Levels, break above this level could take the price to test 0.782 FIB Level resistance around 7300$.
An impulse wave and short squeeze is pending
Generally, Bull cycle starts with an impulsive wave and it also ends with an impulsive wave. During the last impulse wave, Bitcoin price reached 4200$ to 5200$ in few hours – resulting into heavy liquidation of shorts at previous resistance area(4200-4500$).
Bitfinex shorts are still not squeezed – That means Possibility of a squeeze is still open, Also Those who have missed the long opportunity are adding shorts above 6300$, An impulse wave to the upside can squeeze these shorts could send the price above 7300$.
Bitcoin is about to break 21 Monthly Moving average
The last Bull run started when Bitcoin broke above 21 monthly moving average and found support above it. If Bitcoin breaks above 21 Monthly moving average then there is a fair chance of a continuation of the rally to 7500$ or maybe even 8500$. We will be officially into a next bullish cycle – If bitcoin finds support above 21 Monthly Moving Average.
Conclusion
Lets Keep it simple – If Bitcoin breaks above 100 weekly MA (6500$) and 21 Monthly moving average (6800$), there is a 90% chance for bitcoin price to reach above 7300$.
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Hitesh Malviya is the Founder of ItsBlockchain. He is one of the most early adopters of blockchain & cryptocurrency enthusiast in India. After being into space for a few years, he started IBC in 2016 to help other early adopters learn about the technology.
Before IBC, Hitesh has founded 4 companies in the cyber security & IT space.
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