Bitcoin will rise to $73,200 in 2021, where it will peak

Bitcoin will rise to $73,200 in 2021, where it will peak – Top Chartist

Bitcoin has enough fuel to continue its bull run – until its price reaches $73,000, according to top chartist Alan Masters.

The independent investment advisor shared his bullish outlook for the crypto flagship after studying longer-term charts. In doing so, he noted that monthly charts of BTC/USD have printed TD sequential signals since November 2016, leading to bullish recoveries each time.

Even on weekly timeframes since March 2020, each TD Sequential cycle – where the Immediate Edge asset prints eight or nine consecutive candles in the same direction before changing course – led BTC/USD prices higher. Masters called the technical indicator a “real deal” and suggested its historical accuracy could at least push the pair towards $44,000-46,000.

“Bitcoin clearly has a parabolic run and there is no sign of it stopping,” the analyst said.

Correction and continuation

The charts provided by Masters show Bitcoin in a repeating upward pattern. For example, the weekly highlighted the cryptocurrency’s tendency to correct downwards after printing the eighth or ninth candle as part of its TD sequence.

In doing so, it tested its 21-period moving average as support. Later, the price continued upwards.
TD Sequence and 21-EMA setup on Bitcoin’s weekly time frame. Source: BTCUSD on

The first such event occurred in late May 2020, followed by repeats in August and November. In the meantime, the pattern was all over the monthly charts. It printed its seventh TD Sequential candle in December 2020, suggesting a bullish continuation through January or February 2021.

“Looking at the volume indicator, we can see that there is clearly room for much more,” Masters said. “The real bullish action has yet to start.”

Who is buying bitcoin?

Just before Masters’ analysis, Bitcoin had hit another record high this week at $29,321. Many traders agreed that the cryptocurrency would soon reach the $30,000 milestone – more than 600 per cent higher than the mid-March low of $3,858.

The main reason for Bitcoin’s relentless bull run is fear of inflation. Bitcoin bulls have long cited the cryptocurrency as a safe haven against fiat devaluation. Previously rather ignored, the narrative finally picked up steam against the backdrop of the coronavirus pandemic.

Institutions, family offices and corporations entered the bitcoin market with the promise that the cryptocurrency would protect their portfolios and reserves against a falling US dollar. Since mid-March, the US dollar index has lost more than 12 per cent of its value. Its fall began when the Federal Reserve decided to give the US economy as much monetary stimulus as it needed.

The pseudo-quantitative easing lowered interest rates to almost zero. This, in turn, increased the attractiveness of government bonds, as yields on short-term bonds fell to below zero and on long-term bonds to below 1 per cent.

That’s lower than the rate of inflation – meaning investors made little by holding cash and bonds.

“Paper money printing will have its own bull run in 2021 and beyond, which is a [strong] bullish signal for Bitcoin and the overall cryptocurrency markets,” Masters said.