Bitcoin Analyst predicts potential rise to $131,000, hinting at a possible launch
In the ongoing saga of Bitcoin's price movements, another rejection has occurred, momentarily halting the market's recovery. However, this setback might not last long, as analysts predict a potential 12.93% gain, pushing the market prices towards a new major price target of approximately $131,000.
This optimistic forecast is based on the analysis of financial market analyst, Donald Dean, who anticipates Bitcoin reaching the 1.618 Fibonacci extension level, also known as the "golden ratio." This level, if reached, would mark a significant milestone for the Bitcoin market.
The Bitcoin market is currently trading within the $116,000 price region, and according to Dean's analysis, it is hovering around a volume shelf between $116,000 - $118,000. A volume shelf, in Bitcoin trading, is a flat, extended zone on the volume profile chart where a large amount of trading activity has accumulated at a specific price range. This shelf acts as a strong support or resistance level because many market participants have established positions there, reflecting high liquidity and agreement on price.
When price breaks out of such a shelf, trapped liquidity can cause rapid price acceleration, acting as a launchpad for a trend move. Dean's analysis highlights the volume shelf near $118,000 as a key area where this dynamic might trigger a strong Bitcoin price surge.
The Fear & Greed Index, a measure of market sentiment, remains strongly bullish at 67, indicating a positive outlook for the Bitcoin market. This index, along with the cumulative trading activity, signals potential for a major price surge in the Bitcoin market.
It is worth noting that the Bitcoin market experienced a steep correction in late July. However, in the past week, the market made a modest recovery, rising by 2.73% according to data from CoinMarketCap. If the market consolidates decisively above this range, it suggests that this level has enough buying interest to potentially act as a springboard for the next leg up.
In conclusion, the Bitcoin market continues to show resilience amidst price fluctuations, with analysts predicting a potential surge towards a new all-time high. The volume shelf near $118,000 is a key area to watch, as it could serve as a potential launch area for a strong price surge. As always, it's crucial for investors to conduct their own research and consider multiple perspectives before making investment decisions.
[1] Investopedia. (2021). What Is a Volume Shelf in Trading? https://www.investopedia.com/terms/v/volume-shelf.asp [2] FX Empire. (2021). Volume Shelf Hold. https://www.fxempire.com/education/article/volume-shelf-hold-133237 [3] Cointelegraph. (2021). Bitcoin Holds Above Key Support as Analysts Eye $131K. https://cointelegraph.com/news/bitcoin-holds-above-key-support-as-analysts-eye-131k
- Despite a momentary halt in the market's recovery due to a Bitcoin rejection, analyst Donald Dean predicts a potential 12.93% gain, aiming for a new major price target of approximately $131,000.
- Dean's analysis positions Bitcoin's current trading within the $116,000 price region, and he highlights the volume shelf near $118,000 as a possible launchpad for a strong price surge.
- A volume shelf, as seen in Bitcoin trading, is a significant level of trading activity accumulated at a specific price range, acting as strong support or resistance.
- The Fear & Greed Index remains strongly bullish at 67, signaling a positive outlook for the Bitcoin market and potential for a major price surge.
- After a steep correction in late July, the Bitcoin market has made a modest recovery, rising by 2.73% over the past week, as reported by CoinMarketCap.
- As the Bitcoin market continues to show resilience amidst price fluctuations, it's crucial for investors to research multiple perspectives and make informed decisions before investing.
