Good day Hiveians!
Join me in analyzing the crypto markets!
So by now you have probably heard that Elon Musk bought 1.5 billion (!) Bitcoin.
How did that decision affect the market? And where does that put us in the current cycle?
I have been writing a lot of how Bitcoin would be seeing another correction as far as we wouldn't "break" the fractal of bitcoin. Well, with the huge spike yesterday and bitcoin climbing by more than 25% in a day (!) the mid term correction is off the table so to speak. This shows how one man can change the pattern and sustainably affect price movement. We are now at an easily identifiable part of the cycle. You can see this in the chart below:
We have broken the upper orange trend line; and I think after a day of watching the market it is a real breakout. This means that we are entering the mid phase of the bull cycle. It is characterized by an aggressive upward momentum with corrections of about 20-30% occurring after some weeks to months which then in turn are followed by new price all time highs. This is a close up of the trend lines:
The blue lines in the chart give us a rough indicator of how price will move over the next months. But how fast and how high will prices climb? Is there another indicator? By using the trend-based fibonacci extension and time tool we can see how things could be moving:
The peak of bitcoin could therefore occur in September/October of this year. This is a lot sooner than what I was expecting. I actually had hoped for more time as things will move just too fast in the next months. But it also means that there will be a lot of short term gains...
Here you can see what the next target could be for bitcoin. The previous cycle corrected at 2.618 with about 30%. If the pattern repeats then we would have bitcoin climbing to about 120k at around March/April. Not bad right?
I'll post an update about ETH as well soon!
As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!
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