How to Prognose the Next Big Move of Bitcoin Price
- Bobby Simmons
- May 26, 2021
- 0 Comments
Do you want to know the next price that BTC will achieve? It’s crucial to make a solid plan before you buy bitcoin, to understand your potential ROI, and hence, determine the best entry and exit price, especially if you use leverage.However, how can you predict the Bitcoin price action? Even though it’s impossible to have a crystal ball that tells you the future, it’s possible to make a very educated and accurate guess if you follow our guidelines.The Fundamentals – We Are Still in a Bullish MarketBitcoin still has a long way to go because the fundamentals say so, and according to the usual graph of market sentiment, we have not reached the mania phase yet, which is where the price of BTC and altcoins start to go parabolic.Therefore, the bitcoin price in the midterm is expected to go up, simply put because you have lots of institutional interest and retail investors who are ready to keep buying. Even with last week’s 1 million liquidation – because the BTC price fell to $50,500 from nearly $60,000 – more people are willing to get back because the sentiment is still very positive.However, we needed a reset, and according to expert traders and investors, it was the “break” we needed. With funding levels going through the roof, it was expected that we could experience a decent pullback.According to Dan Held, Bitcoin price could go as high as $288,000 USD. Nonetheless, we recommend you to have your own targets. If you want to go with this prediction, at least have a plan for selling partially because the market will fall, and when it finally takes place, you better be prepared. Otherwise, you will see your profits go down the drain.Now, let’s talk about the technical, so you can see how you can make a more educated guess about the next big move of Bitcoin price.The Technical Analysis – How to Predict the Market Movements like a ProfessionalTechnical analysis is not easy, and this post is not intended to be a full guide. Instead, we will give you the basics so you can walk in the right direction.When a flash crash happens like in the 3rd week of April, the trend usually turns bearish because the Bitcoin price has to find support and then break through resistances to go back in the bullish trend.Nonetheless, these flash crashes create excellent buying opportunities because they are dips themselves, and of course, it’s a good opportunity to buy Bitcoin and even play with leverage by longing/shorting positions between the support and resistance.A Tale of Support and ResistanceFor example, between April 18 and April 19, the Bitcoin price had been battling between support at $56,500 and resistance at $57,500, which itself creates a great opportunity for longing and shorting. However, the point of this example is that if it happens to break the $57,500 resistance and turn it into support – which means that the price is not likely to go lower than it because the buyers won’t accept any less than that – then the price is likely to keep climbing until meeting the next resistance, and once again, turning it into support.Accumulation Is A Positive SignNow, you also need to spot when accumulation is happening. When whales and investors accumulate, it’s usually a positive sign because it’s likely that the Bitcoin price will have its next big move. As of now, we are seeing signs of it but we still need more price action to see if we’re back in the bullish trend or not, so it’s better to be careful.Therefore, if you want to make the best entry price possible, then you need to spot and analyze those support and resistance levels, so you can buy partially, and if you prefer, you can buy at the support and sell at the resistance. This way you will be able to buy back at the support, to take advantage of the compound interest from buying at the bottom and selling at the top.Nonetheless, be careful when doing this because if the resistance breaks and the sentiment gets strong, then you will miss your entry price. Especially if you spot a possible accumulation taking place because it means that the price is likely to shoot up any time. And as you know, crypto markets are highly volatile and you need to be prepared for the worst possible scenario.ConclusionNow you have the fundamental skills to make good predictions on BTC price, and of course, be ready before the next big move. If you have questions, let us know in the comments. We are ready to help you to make the best crypto decisions!