Bitcoin

Bitcoin’s Heavy Breakout fractal shows that BTC price could reach $ 250,000 to $ 350,000 in 2021

Bitcoin (BTC) has the potential to push its price between $ 250,000 and $ 350,000 by the end of 2021, a long-standing fractal suggests.

The first day Job by the analyst nicknamed Bit Harington, the bullish setup of Bitcoin’s secular price spikes was inspired after each halving when the reward for the mining block was halved. Analysts believe the halving is a bullish event that will reduce the supply of newly mined BTC.

Harington recalled that after the first two halving events in 2012 and 2016, Bitcoin price rose more than 600% as measured by a line known as Resistance / Support (R / S), as shown in the graph.

Bitcoin price development after the first two halving events. Source: BuyBitcoinWorldWide, PlanB and Bit Harington

This line represents a barrier during an uptrend period. Traders tested it for a breakout several times before successfully breaking it to make a new record high. As prices began to correct, they eventually bottomed near the same line.

In the 2020-2021 period, Bitcoin will see a similar upward trend, rising from under $ 4,000 to over $ 60,000. Once again, Harington marks the $ 60,000 level as the same R / S line that is helping keep trades from making a clear bullish breakout.

https://twitter.com/bitharington/status/1439559499350781952?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener
The analyst suggests that Bitcoin will rise above it to rebound to a new record price.

Cointelegraph Markets analyst Michaël van de Poppe responded to Harington’s fractal theory, adding that it should put the price of Bitcoin in a range of $ 250,000 to $ 350,000.

However, he noted that the big bull run could also lead to a brutal correction that could bring Bitcoin price back to $ 65,000, just near Harington’s S / R of $ 60,000.

https://twitter.com/CryptoMichNL/status/1439579632634843142?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener

Do the basics match?

Bitcoin has skyrocketed after falling below $ 4,000 in March 2020, largely due to loosening monetary policies from global central banks aiming to contain the economic fallout from the Covid-19 pandemic. The cryptocurrency ended the year at around $ 30,000 as private and institutional investors awoke to their safe haven amid a falling US dollar and rising inflation fears.

So far, Bitcoin price topped around $ 65,000 in 2021 before correcting below $ 50,000. At its annual low (YTD), the pair traded for $ 29,301 on the Coinbase exchange. The losses were spearheaded by the abrupt ban on all crypto activities in China (including mining) and the alarming tweets from Elon Musk about its explosive carbon footprint.

Bitcoin price history throughout history. Source: TradingView.com

BTC credit on the exchanges falls to new lows

The cryptocurrency kept the price above $ 30,000 as its reserves on the exchanges plummeted.

Blockchain data analytics service CryptoQuant reported that Bitcoin balances on crypto trading platforms fell to around 2.37 million BTC last week, the lowest level in more than a year.

Bitcoin reserves on all exchanges. Source: CryptoQuant

The decline in Bitcoin reserves represents the intent of traders to hold the cryptocurrency instead of trading it for altcoins and fiat.

Bitcoin hash rate almost restored

Bitcoin’s rebound from under $ 30,000 to nearly $ 50,000 also coincided with its V-shaped hashrate rebound.

Related: BTC price drops to $ 47,000 as the weekly deal closely tracks the bitcoin futures gap

For starters, the processing power of the Bitcoin network dropped from 180.66 million TH / s in late May to 84.79 million terahashes per second (TH / s) in early July facilities or relocations abroad.

Seven-day average bitcoin hash rate in recent history. Source: Blockchain.com

But the network recovered more than half of the lost hashrate, reaching 136.92 million TH / s on September 18, showing that China’s direct ban has no lasting impact on the bitcoin mining sector.

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

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