In amazing style bitcoin smashes through $30000 like a knife through butter. Just when we thought the retrace was imminent at $30k, bitcoin prints a massive bullish candle on the 4 hour chart. Up over 6% in 4 hours, just over $32k is the new ATH, depending on which exchange you use.
Add to that the massive volume candle and it looks like yet another breakout, in a long list of them since $19500. It looks like $100k will be a conservative target for 2021. Some have likened this bitcoin bull run to a whale scraping barnacles off its sides as it swims upward. All the old alts are being decoupled from bitcoin and are crashing now. Some like Monero, Zcash and Dash are getting hit by some major FUD, with the SEC now going after security coins. So it’s not just XRP getting some flack.
Is the cryptocurrency industry getting a major shake-up now? I wonder if USDT will be next to be under the spotlight of the SEC? That would really hit the bitcoin price hard. Let’s not entertain the idea until it really happens. So far some tokens are surviving the purge and some are not. All are trying to climb this bullish ladder and ride the momentum.
Bitcoin is setting a heated pace. We thought it would be harder for price to be moved at these higher levels, but here we are – up $2100 in 4 hours, and climbing. Let’s admit that the pace of this price hike is unsustainable. It’s going up too fast to last, and a correction now would be healthy for the long term.
With all the bitcoin being bought up, there is not enough liquidity it seems. Who knows where this pump will end? These current price heights are incredible. The FOMO is biting hard now. Don’t be upset though, in hindsight take profit where you can and let’s not lament not calling the top. No one can really sell the top every time. At least we are taking profits on the way up. One can always buy back in on a decent dip. Approaching $33k now, bitcoin knows no limits. The euphoria is epic at these dizzy heights.
Don’t get swept away by the waves of bullish momentum. There will be times of retrace or pullback, which will balance out these hyped up pumps now, traditionally speaking that is. Nothing is written in stone, only in code. Which is as good as stone nowadays when it comes to bitcoin.
Bitcoin is the primary investment now, with Ethereum following close behind. There may be other outliers in the altcoins too, though we need to watch out for the centralized coins, like XRP and others. Pre-mined tokens like XRP are not ideal and not as safe as bitcoin. Even though bitcoin code can be altered, it needs consensus, and that’s not easy. It’s actually almost impossible to get all the coders and miners all over the entire planet to agree and simultaneously implement the change.
So bitcoin is built to be resilient. Up over 11% so far today, or $3000, bitcoin is just turning into a superhero. To the moon. We could be forming a double top soon, which will be a sign of a potential retracement. That could be anywhere between now and $40k. Then the retrace would probably dip to $20k. Ultimately the weekly 21 MA is the absolute bottom for a bull market, which is currently around $15k, but we may not dip that low under current conditions and buying power.
