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Bitcoin Top Price Prediction: 3 reasons why BTC is ready to rise to the moon, and not to the dark side

  • BTC/USD trades in a narrowing wedge at the wake of the new year.
  • There are three reasons why the grandaddy for cryptocurrencies should rise.
  • The charts show BTC/USD is trading in a narrowing wedge with rising momentum. The experts poll shows a sideways move in the short-term.

Bitcoin kicked off the year by getting comfortable in range, not going anywhere fast. The ranges are becoming narrower, and this implies that a significant explosion is coming. 

But to what direction?

Here are three reasons to favor the upside:

1) Institutional interest rising

Bakkt recently raised no less than $182.5 from Microsoft, the Boston Capital Group, and other factors. The ICE-based venture wants to offer quick BTC futures to institutional investors and will launch soon after several delays late in 2018. 

Moreover, the blockchain industry is thriving, pushing more money and hiring at an accelerating rate. Also, the day for a decision by the SEC is getting closer. In late February, the US authorities will decide on a Bitcoin ETF request by Van Eck and SolidX. 

Why is a Bitcoin ETF essential? It enables mainstream investors to pour into digital currencies.

More:: Bitcoin ETF explained: 9 questions and answers about the critical crypto catalyst

2) Ethereum leads, Bitcoin follows

As FXStreet expert Tomas Salles analyzes, there is no rally without Ethereum. Vitalik Buterin's coin is surging following the Constantinople upgrade which makes Ether more efficient. 

Bitcoin, the King of Crypto World, will have his chance in the last phases of the current bullish trend. The current movement of Ethereum is an excellent opportunity to scratch some good Satoshis to Bitcoin, but when the time comes, it will be necessary to pass it on to Bitcoins to realize the gains. That will be the critical moment for the King.
 

Bitcoin is set to follow sooner or later.

3) A new year and winning buying streak

The GTI Vera Convergence Divergence shows that Bitcoin enjoys the longest streak of buying in six months. As with Ethereum's push higher, this move has yet to materialize in Bitcoin. Will it happen soon? 

The bottom seems to be behind us and fresh buying in the new year may find fertile ground for an upswing.

All in all, the situation is becoming more favorable for the cryptocurrency. Will it rise to the moon? BTC bulls it will not go to the far or dark side, as the Chinese spaceship did earlier in the week.

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BTC/USD Technical Analysis 

Bitcoin technical analysis January 7 11 2019

As mentioned earlier, the thick black lines show a narrowing wedge. Uptrend support begins with the cycle low around $3,125, and downtrend resistance starts with the mid-December high at $4,240.

Momentum on the daily chart remains positive, and the Relative Strength Index is balanced around 50, thus not pointing to oversold nor overbought conditions. 

The 50-day Simple Moving Average is falling towards the price and dropped below $4,000 to the holiday season high of $3,98 which serves as resistance. 

Above $3,968 and $4,240, we note $4,400 which held BTC/USD down in late November. $4,600 is the next level to watch after it limited a recovery attempt earlier that month.

The January 1st low of $3,640 is the first support line. It is followed by $3,546 which was a cushion earlier. $3,456 was a swing low in November and $3,225 was a swing low early in December. 

The Forecast Poll of experts shows a sideways move in the short term and a bearish bias in the medium and long terms. The average forecast has been downgraded for the next week but upgraded for the next month and quarter.

Author

Yohay Elam

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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