- Summary:
- Bitcoin price action suggests a possible retracement toward the upper edge of the rising channel as the USD strenthens accross the board.
Bitcoin price reached an all-time high above $24,000 on strong adoption and interest from institutional investors. The cryptocurrency more than doubled in value in the last couple of months as it rallied from $10,000, but now is at risk as the USD threatens to reverse sharply.
So far, during the pandemic, Bitcoin offered a digital alternative investment opportunity for those looking to diversify the risk away from traditional assets. The recent news that more and more institutional investors are turning to Bitcoin caused the price surging to record highs. Because of Bitcoin’s scarcity, the assumption is that the buying pressure will push prices even higher the more investors chase the digital currency.
The surge in Bitcoin price came at the expense of the USD. The dollar’s decline across the board led to stocks making all-time highs and the dollar index collapsing. Should the dollar reverse course, expect a possible reversal in Bitcoin price too.
Bitcoin Technical Analysis
From a technical perspective, Bitcoin remains bullish. It broke higher above a rising channel, and the bullish perspective persists as long as the series of higher highs and higher lows continues. However, at this point, the market is at risk of a retracement back to the rising channel. As such, bears may want to go short with a stop at the highs and a take profit at the upper edge of the channel.
Bitcoin Price Forecast
