Since last, Bitcoin stopped setting all-time-high and created free space for others. Bitcoin is in correction phase now although 30% decline may be significant for a correction. The truth is that Bitcoin is different from traditional assets. Although recent Bitcoin growth created fear of further decline, Plan B, who had precious predictions using his S2F theory, claimed that bitcoin still did not reach the point of no return. In fact, point of no return is the point of time, when happens based on Plan B calculations in the first half of the 2021. It says that Bitcoin price will surge 600% to 800% from whatever price it has at that time. Here we are going to have a weekly analysis (09–16 Jan).
Glassnode reports confirm Plan B prediction as well. The reason is that since July 2020 around one thirds of mined Bitcoins flowed to exchanges. It means that regardless of experts and analysts, miners are also expecting price surge for Bitcoin. Despite the mention facts, Bitcoin price reached a point, where it requires injecting more capital and institutional investors contribution in the market. Here we are going to have a Bitcoin market analysis in order to find out the probable move of the market.
If you take a look at Bitcoin daily price chart in the third slide, you will find out Bitcoin price action formed a symmetrical triangle pattern, which signals the price sustainability in the current market condition. However, the next move of the market would not be precisely predictable as long as one of the triangle lines will have been broken.
If the upper line of the triangle will have been broken, we can expect that price will surge to $52000. Conversely, if the bottom line of the triangle will have been broken, there is a possibility of decline to $30,000 or even $28,000. However, if price declined, it could not impact uptrend.
Weekly Analysis (09–16 Jan); Ethereum
Last Sunday, Ethereum price surged to $1,350, but rapidly it declined for $450 and fell to $900 in a day. However, finally the daily candle closed above $1,000 at $1,080. This movement shows traders’ greed in order to take the opportunity and enter the market. By looking at the charts, we can understand that Ethereum is stocked in a symmetrical triangle the same as bitcoin. However, indicators show that buyers still are in control of the market. The reason is that EMA-20 has ascending slope and RSI is in the positive zone. Now, we have to wait in order to find out which line of the triangle will have been broken. If the price breaks the upper line of the triangle, the price may surge to $1,766. Conversely, if the price breaks the bottom line of the triangle, the price may fall to $1,000 or even further at $840.