The noteworthy rise in the price of Bitcoin in 2021 has pushed its cost to over $57,000 per token, well more than double its December 2020 top. The cryptocurrency’s impressive rise has also sent the crypto fear and greed index into an overbought area, which can often signal downside correction is coming in the medium-term.
However, right now, the fundamental factors for the Bitcoin market remain solidly bullish as institutional money invades the sector.
In January, US auto maker Tesla revealed in its filings with the Securities and Exchange Commission (SEC) that it invested $1.5 billion in Bitcoin. The same month also saw MicroStrategy, a public-traded software intelligence company, adding $10 million worth of BTC in its balance sheets at an average rate of $33,810 per token.
Potentially much, much higher.
A technical analyst who uses the twitter handle ParabolicTrav, recently shared what he terms “Bitcoin chart porn.”
Using parabolic channels (parabolic curves that define the upper and lower price boundaries of trading action within a given period of time) his chart indicates that if Bitcoin continues its current trend within the channel, the price could reach a minimum of $250,000 on April 19, 2021.
ParabolicTrav offers these thoughts:
Best fit $BTC parabolic curve so far, assuming accelerating trend along 10wma.
Could top anywhere within this, box is not a top target, just showing where the lines start converging which indicated top in 2017.
THIS IS JUST #BITCOIN PORN/ART
Could such a scenario actually occur?
It’s obvious that price corrections/declines happen in ALL markets. A correction in the price of Bitcoin in the coming days or weeks could cause the price to drop out of the bottom of the parabolic channel, in which case, the channel would have to be re-drawn.
While we would say a $250 thousand price for Bitcoin by April 19th is possible, we certainly wouldn’t label it as likely.
But is sure is fun to think about…