Bitcoin has rocketed through resistance at $50,000 as if it didn’t even exist at all. The leading cryptocurrency by market cap also retook the $1 trillion market cap, and may never look back after what is possibly ahead.
The big breakout sending Bitcoin another few thousand dollars higher and cleanly through resistance to set a higher high on the weekly, was caused by bullish news that billionaire George Soros was getting into cryptocurrencies and already owns some “coins.”
The news is a sign that institutional money is finally on its way in, and it could cause a Q4 in crypto unlike any other. This article is examining all the key factors that could cause an unbelievable Bitcoin bull run to appear right before our very eyes, and it already could be underway following the break through $50,000.
Bull Or Bear Market? We Finally May Have An Answer
Since the April 2021 high put in on Bitcoin price charts, investors and traders have been locked in a battle, arguing if a bear market was here sooner than expected or if another leg up would follow whatever downtrend going on currently.
The price chart began to look eerily similar to the February 2020 high that preceded Black Thursday in March that year. That collapse caused Bitcoin to decline by 70% and retest the bottom trading range.
It ended up being a bullish retest, and a bull market officially began. Price targets for the top of Bitcoin reached as high as $100,000 or more, so stopping at $65,000 for so long was admittedly confusing.
The following consolidation phase left traders confused further, waiting for either a lower low or a higher high to form on a timeframe higher than the daily.
Traders who were looking only at daily timeframes and the Black Thursday fractal, piled on short positions that were ultimately wrong, and provided the fuel necessary to push Bitcoin beyond the threshold. Shorts covering has pushed Bitcoin to $55,000 but the higher high on weekly timeframes was the signals most bulls were waiting for.
Although the chart itself has suddenly turned bullish, news has begun to follow. Not only was there the announcement of Soros and his fund’s involvement in cryptocurrencies, but several banks have introduced new custody services, products, and more. Even Morgan Stanely increased their Grayscale Bitcoin Trust holdings by 30,000 GBTC, preparing for what is about to come.
With Bitcoin failing to make a lower low, bulls are back in charge and they could lead the cryptocurrency to any of the many price targets.
Bullish Technicals And Fundamentals Point To Positive Q4
Technically, all signs point to a bullish Q4 for Bitcoin, but perhaps not all cryptocurrencies until later. Looking at the bigger picture, Bitcoin retaking the $1 trillion market cap is significant, and it has caused the stock market, altcoins, and more to all pour into Bitcoin all of a sudden.
The RSI is back in the bull zone on weekly timeframes, and only a short few ticks away from re-entering the zone on the monthly time frame. Another higher high on monthly timeframes will seal the deal from a technical perspective.
The entire move could have potentially been predicted using Elliott Wave Theory. The practice is often frowned upon and is less effective with looking at the stock market. However, speculative assets like cryptocurrencies tend to follow these investor waves much more closely.
The way it would work is that Bitcoin’s rise in 2019 to $14,000 was wave one, and the correction on Black Thursday would be wave two. Wave three was the rally to $65,000, while wave four caused Bitcoin to crash back to $28,000.
All uptrends follow this five wave pattern according to RN Elliott, and if Bitcoin follows this path, the last leg up is here.
At the same time, other technical and fundamental indicators are screaming bull run. The Average Directional Index has crossed bullish, and Bitcoin is well above the Ichimoku cloud. The cryptocurrency also is well above the mid-Bollinger Bands and has formed a golden cross of the 50-day moving average and the 200-day moving average.
The Moving Average Convergence Divergence indicator is also turning up, signalling that bulls have the momentum at their backs.
In terms of fundamentals, BTC supply on exchanges continues to shrink, and the hash rate has returned to all-time highs. The hash ribbons have turned up long ago and are showing why they are the most profitable signal in crypto.
What The Last Leg Up In Crypto Could Look Like
If Elliott Wave analysis is correct, the “duration and magnitude” of a wave five should match the strength of wave one. Wave five can also extend and match wave three, but this is rare. If wave five matches wave one, Bitcoin should reach prices of $125,000 per coin. If it extends to match wave three, prices of $250,000 and higher are possible.
When the wave five rally does end, that would be it for the bull run and this cycle. A bear market would follow, and the entire cycle would start over. At some point, altcoins will also outperform Bitcoin again, but that time is not now.
Bitcoin will continue to suck capital out of altcoins, while it is at its most bullish. When altcoin sentiment is at its most bearish, that’s when it will be time to start trading altcoins again. When that time comes, you need a reliable cryptocurrency margin trading platform like the award-winning PrimeXBT.
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