Bitcoin is back above $45,000. With this new bull run underway, predictions about the direction BTC’s price might take are multiplying.
According to the exchange OKex, there are two scenarios on the table: BTC will either go sideways for two days between $45,000 and $48,000, or it will return to $42,000 and then bounce back to $45,000.
Indeed, Hunain Naseer, Senior Editor at OKex, explains:
“Four consecutive days in the green have seen Bitcoin breakthrough two key resistance levels ($40K and $45K) and the market leader now trades in a critical range, just above $45K. If this trend continues, we are going to start seeing faster moving averages cross over slower ones — a bullish indicator for price. However, it is likely that BTC will consolidate between $45K and $48K for a couple of days before attempting to breach $50K”.
Then there is the “‘bearish” scenario:
“On the downside, we are looking at a possible retest of the support around $42K, but even if that happens, the price is likely to bounce back towards $45K rather quickly. On the news front, the infrastructure bill is in the spotlight this week and the market is likely to react swiftly to any developments, positive or negative”.
Bitcoin predictions, keep an eye on the RSI
Also worth keeping an eye on is the Relative Strength Index. Bitcoin‘s RSI is currently hovering around a value of 70. Generally when the RSI is above 70 the asset is in an overbought zone and this could trigger a bearish trend, which would justify a move towards the $42,000 support.
Already in the past, most recently at the end of July, when the RSI peaked at 74 points, a drop in the price of BTC followed, returning from $42,000 to $38,000. However, these declines have always been followed by higher rises.
The fact remains that bitcoin now seems to be firmly back above $40,000 and many analysts see this as a sign of an imminent climb back up to April’s record high of $65,000, although it may take some time.
There are even those who say they are certain that bitcoin will reach $100,000 by the end of the year.
All this while the US is discussing how to get more taxes from cryptocurrencies as part of the pending Infrastructure Bill. This doesn’t seem to faze the queen of cryptocurrencies at all: for once BTC is showing resilience to the news.