Bitcoin Price Top Forecast: to the moon we go!

The cryptocurrency market lived though an exciting week that culminated in a strong bullish run across all major coins. The total capitalization of all digital assets in circulation jumped to $187 billion, gaining nearly $10 billion in a single day amid growing enthusiasm of both retail traders and large investors.

What’s going on in the market

This week was packed with news and events. Many of them took the cryptocurrency traders by surprise and event changed the landscape of the industry. Hopefully, it was all to the good as the bullish momentum is gaining traction. 

The Bitfinex-Tether scandal that shook the industry in the end of April, but the market recovered quickly after an initial shock. Obviously, cryptocurrency community has become more responsive to positive news as the Bitcoin and all major altcoins slowly climbed back into the previous ranges even as new evidence of Bitfinex and Tether lousy activities occurred during the week. 

Thus, the general counsel of Tether Limited confirmed that only 74% of USDT was backed by fiat reserves, and the company consciously concealed that fact from users.

Also, TRON Foundation was forced to shelf its plans to launch $20 million rewards program. It was supposed to encourage the coin’s adoption and promote the migration to Tron’s protocol. Moreover, a crypto ATM startup CoinFlip also postponed the launch of Tron version of USDT on over 180 ATMs across the US. Tron’s users were not happy, but the coin still managed to gain ground on a week-on-week basis.

Anyway, Tether story didn’t trigger an exodus from cryptocurrencies, as it might have been expected. Possibly, it was out-weighted by a slew of positive news and evidence that the industry moved to the stage of institutional adoption. 

Thus, according to the recent survey performed by Greenwich Associates on behalf of Fidelity Investments, 22% of large institutional investors have already added digital assets to their portfolios, while 47% believe that cryptocurrency-based assets will bring value to their strategies. These figures are based on the survey of over 400 large investors in the US, including family offices and pension funds, and they prove the point that our future will be digital. Interestingly, the survey was carried out amidst the strong bearish market dubbed as crypto winter, though the massive sell-offs on the cryptocurrency market didn’t discourage big players from experimenting with the new technology and new type pf assets.

BTC/USD, 1D chart

BTC/USD has been recovering slowly during the week and performed a quantum leap above $5,700 during European hours on Friday. The first digital coin hit the highest level since mid-November 2018 and gained over 6% on a day-on-day basis in a matter of hours. If nothing happens during the weekend, this week will become the best in terms of growth since the beginning of April.

Looking technically, there is a good chance to test long-awaited $6,000 handle and cement positive sentiments on the market. The nearest resistance level comes at $5,900. it is strengthened by the upper boundary of the upside channel from the beginning of April. Once it is out of the way, the above-said psychological $6,000 will come into view. The next barrier is created by SMA100 weekly at $6,500. BTC/USD has been trading below this MA since November 2018.

Both daily and weekly RSIs point upwards, though the indicator on a daily chart is moving into an overbought territory, which means that we should not discard a possibility of a downside correction.

The major hurdle is located around $5,300. This area is created by a confluence of several strong technical indicators, including the lower boundary of the recent upside channel, SMA200 1-hour, SMA50 4-hour and 161.8% Fibo projection daily. A sustainable move lower will negate the positive impulse and bring $5,000 back into focus. Once below, the sell-off may be extended towards $4,800 (DMA50) and to $4,400 (DMA200).

The Forecast Poll of experts improved since the previous week as expectations on midterm and long term timeframes are bullish. All price estimations are well above $5,000 handle.