After leaving of the channel Bitcoin steadily grew to 36590.. and dropped back to the declining channel boundary. It isn’t what I expected. We have to correct our bitcoin prediction and act accordingly. Let’s find out the options.
The first and obvious – yet less likely in my opinion is that bitcoin price will fully return to the channel. In in this case the strong downtrend will bring it to sub-30k price.
The other bitcoin price prediction, and in my opinion more realistic one is that after meddling with the upper channel boundary the price will return to the cautious ascension.
Mid-term bitcoin price prediction
Following the results of the week of June 21-29, bitcoin was able to significantly recover. The price reached a low of $28,805, but formed a long lower wick (green). The market managed to close above the horizontal support area of $32,600. This is a very important, for the bitcoin price prediction, zone since BTC has not finished trading below it since the beginning of the year, although it sometimes pierced it with wicks.
At the weekly close, a “hammer” candlestick pattern was formed, which is often regarded as a bullish signal in bitcoin price prediction circles.
Despite closing above the horizontal support, technical indicators remain mostly bearish. The MACD is declining and is in the red zone, the RSI has sunk below the 50 mark, and the stochastic oscillator has formed a bearish intersection.
Thus, the current rebound is not enough to confirm the reversal of the trend, which everyone is talking about.
Bitcoin price prediction: the news factor
With the growing popularity of cryptocurrency, some athletes decide to invest their capital in bitcoins. So, Russell Okung from the Panthers last season received half of his earnings in cryptocurrency.
In May, Tom Brady announced on Twitter that he also invested part of his income in bitcoins. He also joined the flash mob # LaserRayUntil100k (the idea is that those who have invested in bitcoins highlight their eyes with a laser on their avatars on Twitter and hold them like that until bitcoin is worth $100 thousand).
But the problem is that the cryptocurrency, which is rapidly growing in price, suddenly began to become cheaper sharply. If we follow Brady’s tweets, we can conclude that he invested in bitcoin at a price of $56.245, and on June 25, the cryptocurrency was already worth $31.637 (a drop of 43.8%).
“Well, the laser eyes didn’t work. Who has any ideas? ” – Brady wrote on Twitter.
Institutional critics and their input in the bitcoin price prediction
The quarterback does not write how much he lost and whether this was the preferred direction of his investment. Bitcoin cannot be in the portfolios of most institutional investors for a number of reasons, according to Insight Investment, a company that manages $1 trillion in assets. Insight Investment is part of the financial holding company BNY Mellon, which in February announced its intention to be the first of the world’s major banks to provide customers with the ability to store and transfer digital assets.
According to analysts, the spread of bitcoin is hindered by high volatility, low liquidity, management problems and environmental risks, as well as slow and expensive transaction execution. Therefore bitcoin price prediction means a lot of factors, some of the risks are beyond calculations. Rewards are too, though.