Bitcoin is trading within a triangle pattern, bearish divergence on RSI calls for a bearish move, the chart that forecasts BTC price to be $326,000 next year and ETH is nearing a tip to break
BTC/USD daily chart
Bitcoin price continues to move sideways inside a triangle pattern with declining volume. After 10 days BTC finally made a decisive break above the resistance of the 20-day moving average. This in combination with a smaller falling wedge pattern within the triangle, makes re-testing of $10,000 level likely. If not, we might see bitcoin go down to $9,350-9,400 to test the support. Bearish divergence on the daily Relative Strength Index still lingers, giving an indication to be cautious of an upcoming bearish move.
An interesting chart was created by Digitalik on how bitcoin price action might repeat what it did previously and where it will lead the price in the upcoming years. The “Cycle Repeat” graph forecasts the next all-time high at $326,000 by October 2021. According to this theory, the peak will be followed by a dip to $55,000. As far-fetched as it may look today, BTC is known to go beyond anyone’s expectations. Furthermore this prediction is somewhat similar to the bitcoin stock-to-flow cross asset model, created by PlanB.
This one of the most famous price models for bitcoin. Using regression analysis and indicating phase transitions in clusters, this model suggests that the next cluster brings BTC price to $288,000 between 2020–2024. However, it is important to note that these are theories and speculations, not predictions. As Mark Twain once wisely said “History doesn't repeat itself, but it often rhymes.”
ETH/USD daily chart
Ether is on the way to retest the $250 price level once again, the resistance it was not able to break above for the past 4 months. ETH is also closing in on the very tip of the triangle, limiting the room for volatility and calling for a soon-ish breakout in either direction. Similar to bitcoin, yesterday’s 9% green candle brought ETH price above the 20-day moving average.