Bitcoin Prediction 2 May 2021
Since Elon Musk tweeted on Bitcoin the cryptocurrency enjoyed moderated gains. Many have began questioning whether bitcoin is simply a bubble, ready to burst at any given time.
On the opposite end, there has been a prediction that bitcoin (BTC) may reach $400,000 in 2021. When dealing with historic levels it is fairly challenging to determine how high the price may reach.
The taproot (speedy trial) protocol upgrade will be monitored as it may trigger some volatility across BTC and perhaps other cryptos that will be affected.
While bitcoin is receiving most of the attention many crypto traders are focusing on the next cryptocurrency. Ethereum has posted strong gains in the crypto market. The European Investment Bank (EIB) issued a bond based on Ethereum’s blockchain, which lead to the recent rally in the market.
The total size of the auction was approximately $120 million. From our point of view, the acceptance of cryptocurrencies by the EIB may rekindle a rally in other cryptocurrencies.
For our crypto trade alerts this week we will focus on several digital currencies. Bitcoin is available to all while other cryptocurrencies in these strategies are for members only. This was our prior strategies for bitcoin and Stellar.
BTCUSD Trading Strategy
Our forecast is based on the daily chart. The blue diagonal link may lead some to believe there has been a breakout where the price is expected to continue falling. The black line offers the daily support, which is also the neckline, part of a well-known reversal pattern, top Head-And-Shoulders (H&S).
Please click on BTCUSD daily chart to enlarge:
BTCUSD Intraday Trading Strategy
The strongest signal may be provided when BTCUSD breaks under the neckline, which may trigger strong weakness towards $41,100. To short (sell) bitcoin at current levels following the re-test of the breached support (in blue, now acting as resistance) is possible but a re-test of $62,110 cannot be ruled out.
Shorter time frames however may provide some guidance, which we will shortly explore.
Please click on the chart to enlarge:
A bullish (buy) technical pattern was painted in BTCUSD 4hr chart (reversed H&S). On many occasions following a similar breakout the price tends to re-test the breached neckline (black line).
In an event the price does re-test the neckline and holds above (preferably a 4hr close) we may see some corrective gains in bitcoin. A short (sell) signal may only be presented should the price break under $52.640.