Bitcoin fell a bit on Wednesday, initially rallying to a new ATH just under $65K before pulling back, closing slightly lower on the daily chart. This is anything but bearish, as most of today's action was focused around the COINBASE IPO on traditional markets. Once the IPO frenzy cools off, we should see inflows resume to Bitcoin as we look to target $70K and $80K next.
(April 14, 2021 8:30PM EST)
Short-Term:
Coinbase's IPO today distracted the crypto markets a bit as we witnessed history unfold before our eyes, the stock opening just under $400/share. We do not cover traditional stocks on this channel, but like them or hate them, Coinbase has played a pivotal role in the mainstream adoption of Bitcoin and crypto, and so we congratulate them and thank them for helping provide financial access to retail investors who for centuries have been left behind. But let's not be mistaken: Bitcoin will outperform $COIN over time.
Back to the charts, despite the marginal bearish close, Bitcoin did rally to a new high today, gaining another $2K to nearly strike $65K before pulling back. $65K is likely minor short-term resistance but give the fact that we're coming out of a 2 month consolidation, we should expect a longer and more intense rally now that we've broken out above resistance. $70K is our near-term price target followed by $75K, $80K, $90K, and ultimately $100K, which will be the ultimate test we have all been dreaming of for years now. One thing to keep in perspective: Bitcoin is now closer to $100K than $0.
Once Bitcoin starts moving, which if history is any indication of what's to come over the next few months, Bitcoin could see a massive run up to $80K, $90K, or even $100K by the end of summer. We're coming out of a historically sideways period on the Bitcoin calendar, so as more money continues to pile into crypto, Bitcoin should be the primary benefactor, and crypto HODLers only make up a small percentage of the global population.
$COIN: Good or bad for Bitcoin?
Coinbase's $COIN IPO should absolutely help Bitcoin. First, the brand awareness, network effect, and free publicity will bring crypto buzzwords like "Bitcoin," "blockchain," and "DeFi" to the masses who have heard of crypto but never invested. Additionally, it plants a flag to the world that Coinbase is a legitimate company because crypto is legitimate. This should alleviate many investors' concerns and push more crypto-fringe or crypto-curious investors to finally take the plunge and buy their first Bitcoin.
Bitcoin's RSI fell slightly to 66.90 with the red close but this should not be confused with a sell signal. Bitcoin continues to print higher highs, higher lows, and is trading well above the 200 and 50 Day EMAs, indicating a strong uptrend. Trade with the trend until the trend is no more.
Support: Immediate tentative support at $55K, 50 Day EMA at$50K.
Resistance: $65K, $70K, then $10K intervals up to $100K.
