A PREDICTION ON BITCOIN PRICE MOVEMENTS IN SEPTEMBER AND OCTOBERThe cryptocurrency market, especially bitcoin, is well-known for its uncertainty and high volatility. In our analysis in late August 2021, we successfully predicted the price corrections of bitcoin for the $44-$42k channel.
Corrections are necessary for any dynamic market as they provide investors with the opportunity to re-enter the game and take profit from swing trade and even long-term investments.
In this analysis, we have adopted:
- 4H Chart Date
- IntorTheBlock.com in-chain data analytics for fundamentals
Note:
- As per reports, the available bitcoins on exchanges are the lowest amount since November 2020, which indicates that the whales are buying the dip, and most of HODLers tend to keep their bitcoins for higher prices.
Bitcoin's recent price correction was majorly due to the manipulations by the major exchanges to liquidate the long and high leveraged positions, which resulted in more than $3.5 billion liquidations so far.
- Bitcoin Dominance is going to be re-established in the market. However, we need to consider the fact that the cryptocurrency market has been expanded vastly, and the market is not restricted to some coins anymore. NFTs, DeFi, fast-growing protocols like ADA, SOL, and Polygone, in addition to ETH 2.0, are now competing to get their share from the market dominance. Therefore, expecting a dominance rate like 60% 0r 70% for Bitcoin is not very predictable, and Bitcoin will continue its story with dominance rates ranging between 45% to 55% in the future.
In this analysis, we have considered the dynamic resistance (tactical level) around $48-50K, which plays a crucial role in breaking out of the critical resistance level of 52-54K.
The emerging golden cross on the daily chart (EMA 50 upward cross with EMA 200) indicates the significant momentum for the new rally. Moreover, on the 4H chart, the current candles strive to break out the Ichimoku cloud, and it will construct a tension in the price by the remaining days of this week.
As indicated in prediction candles (yellow color), we expect a sharp uptrend from tactical resistance for breaking the key resistance of 52-54K. We predicted a quick breakout; however, adequate volume is needed to confirm this action.
Due to this sharp and quick breakout, there will be a high tension are on the days ahead, ranging between $55K and $59k zone as there will be high-pressure sales for taking profit by the swingers. Scalpers can enjoy this moment. This portion of the prediction will take 2-3 weeks.
If the bulls can overcome the challenges in the High Tension Zone and the big brothers (big exchanges), don't manipulate the market to liquidate the high leveraged positions, we expect by the End of October, the bitcoin price can have a successful breakout from ATH (64-65k) strategic resistance.
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