Publication date: July 26, 2024
Bitcoin: ready for the $100,000, -
Today, countless articles appear about cryptocurrency and Bitcoin in particular. Because of its nature, Bitcoin is very popular with a large group of investors and analysts. In addition, there is also a group of opponents of crypto. As a result, there are many- very different opinions and expectations about the future of crypto and the near price movement of this particular product. We wrote about Bitcoin in connection with halving back in April. In this article, we return to that and have an interesting technical view of the price for the coming months.
Here you will find the article on Bitcoin in connection with the halving in April.
In April, we indicated that the halving would start to cause a correction in the price of Bitcoin. A correction in a strong uptrend. Unlike the previous halving in 2020 in which the price then rose dramatically, the price had already risen sharply leading up to April 2024. Incidentally, this was partly caused by the ETF being approved by the authorities. This makes it easier for a wider audience and institutions to invest in Bitcoin through a listed product.
On the day of the halving (April 20, 2024), the price of Bitcoin was $65,000.
We indicated that the price could go back to around $44,000.
This level could be an excellent time to put Bitcoin in your portfolio for the longer term. The correction did occur but did not go as deep as expected. With the lowest price since April 20 of $53,000, the price has corrected over 18%. This is a somewhat modest correction for highly volatile Bitcoin. With that, the correction has indeed taken place and is complete according to our algorithm. How to proceed next:
What is the expectation of Bitcoin's price?
For the expectation of the Bitcoin price, we leave aside the diverse views of many analysts. Some analysts like to report a price target of $1 million and some analysts see Bitcoin quickly becoming completely worthless.
We rely, as always, on the chart and our algorithmic pattern recognition system.
Below is the chart of Bitcoin since September 2023. The years of roller coaster ride that preceded it are no longer relevant for the near future forecast.
In September 2023, the current trend started. The upward trend from the $25,000 level.
As you can see from the chart, the rally stalled around the $74,000 level in April this year only to enter the correction already reported. Currently, the price is back around $64,000.
The most likely scenario for the next six months is the continuation of the trend with a price target of $105,000. From the current level, that means a return of over 60% in six months. Hold stoploss at $52,500.
Should I buy Bitcoin now?
Round the current level of $64,000, a buy has relatively the highest risk. Once the trend has shown the next confirmation, of course, the risk level is technically lowered. This is the case with a breakout above $69,000. Once the price breaks out above the top of $ 74,000, then based on technical analysis the risk within this scenario is the lowest. The fourth level to note is $60,000. Technically, it cannot be ruled out that Bitcoin will first test this level before resuming the uptrend. In all cases, the stop loss remains at $52,500.
Conclusion
The conclusion is that buying Bitcoin for the ride to $105,000 can be done in three steps and possibly in four steps. The first tranche was at $64,000, then above $69,000, and finally above $74,000. In between, there may be a moment when the price briefly touches $60,000.00. At this point, a part can also be bought.
Note: This is pertinently not advice but the actual representation of our analysis system with the most likely scenario. Crypto is high-risk and highly volatile.
How to buy Bitcoin?
You can buy Bitcoin through a crypto broker. There are Dutch brokers where you can open your account and easily purchase Bitcoin through an app. We are independent and therefore will not recommend any brokers.
In addition to the crypto broker, it is also possible to purchase a Bitcoin ETF through your bank or broker. ETF stands for Exchange Traded Fund and is a publicly traded regulated mutual fund that tracks the underlying asset. In this case, the Bitcoin.
Several managers are operating that offer a Bitcoin ETF. Buying through an ETF is considered a little easier because it can be done simply through your bank. You do not need to open an account with a crypto broker. The downside is that the ETF manager charges a modest fee for running the ETF. You can always trade fractions of Bitcoin and therefore do not need to purchase at least 1 Bitcoin ad $64,000, -.
Disclaimer: Investing involves risk. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. They are therefore for educational purposes only.