Crypto Price Analysis 7/1: Bitcoin price aiming above $70,000 by mid-2021 plus ETH, XRP, USDT
Bitcoin may be struggling to reach $ 10,000, but its progress is on the right track.
Adding the latest update on July 1, PlanB, the stock-to-flow model maker, shows that Bitcoin is operating precisely as its historical price-raising needs are.
When Bitcoin was hovering near $ 9,100, one of its old fractals was pointing to an official breakthrough towards $ 70,000 or more.
First discovered by Artem Shevelev, a market analyst on TradingView, the model shows Bitcoin in a seven-stage growth period. So it looks like, the cryptocurrency that ran to an all-time high of nearly $ 20,000 in December 2017 succeeded six steps, each of which involved specific price moves and indices.
Shevelev noted that Bitcoin had formed a similar pattern since 2017. It is trading inside the giant symmetrical triangle while going through stages, including medium-sized increase/decrease triangles, called flat zones, inverted triangles, and sudden crashes.
The chart above shows the strangely identical nature between the two samples. If correct, Bitcoin is currently in the penultimate phase before it tries to break out of the giant symmetrical Triangle.
In his chart, Shevelev envisioned the price rising at an extremely high rate as in 2017. Earlier, the rally took cues from emerging ICO excitement. Traders require more Bitcoin so they can exchange it with promising start-up tokens.
Many have compared “ICO mania” to the dot-com bubble of the 2000s. As expected, the ICO bubble burst and caused Bitcoin to drop from $ 20,000 to as low as $ 3,100 in December 2018.
“So, after breaking out of resistance in early 2017, the price of Bitcoin began to rise,” Shevelev said.
“And after crossing, previous highs, [the] market flooded with new traders and fresh money. [It] caused insane growth of the price for about 357 days. [But] will this phase repeats after we cross 20k again? This is [a] topic for [discussion].”
Shevelev’s chart sees Bitcoin rising to $70,000 but does not mention the source of the cryptocurrency’s next massive funding. That makes it more dependent on institutions like hedge and pensions funds, family offices, and others.
Recently, the Ethereum price made another attempt to overcome resistance at $ 228 and $ 230. ETH price could not continue higher and formed a high swing near $ 230.
It corrected lower below $ 226 and the 100-hour SMA. However, it is still trading above the support of $ 222. It is currently rising and trading above the Fib 23.6% retracement of the recent decline from the $230 high to $222 low.
On the other hand, the initial resistance is near $ 226 and the 100-hour SMA. It is close to the Fib 50% retracement of the recent decline from the $230 high to $222 low.
It seems that there is a decisive ascending channel forming with support near $ 224 on the hourly chart of ETH / USD. The first major resistance is near the $ 228 level, followed by the extremely important $ 230 level. A successful close above the $ 230 resistance level could trigger a new rally above $ 232 and $ 235.
After suddenly sliding below $ 0.17, Ripple found support above $ 0.168. The XRP price has started to adjust up and recover above the resistance of $ 0.172.
The bulls were able to push the price above the $ 0.178 resistance, but they struggled to clear $ 0.18 and 100 SMA hours. A high swing is formed near $ 0.178 before the pair begins to correct lower.
It trades below $ 0.176, plus the Fib 23.6% retracement of the move up from the $0.1689 low to $0.1798 high. It currently holds the support level of $ 0.172 and shows positive signs.
The Fib 50% retracement of the upside from a low of $ 0.1689 to a high of $ 0.178 is also the strong support at $ 0.17745. On the other hand, the price can face barriers near $ 0.178, $ 0.18, and the 100-hour SMA.
There is also a major bearish trend line forming with resistance near $ 0.176 on the hourly chart of the XRP / USD pair. If the bulls clear the resistance of the trendline, the price can continue rising to the resistance of $ 0.1800.
A successful daily close above $ 0.18 and a 100-hour SMA could create a new rally in the coming sessions.
Tether’s market cap officially reached $ 10 billion on June 30. At the beginning of the year, the market capitalization of the assets was nearly 4.5 billion dollars. And in early 2019, the figure was less than $ 3 billion.
Some see USDT’s market cap growth as a sign of growing interest in cryptocurrencies.
Because USDT can easily be traded into Bitcoin, Ethereum, and other coins, large companies/traders can theoretically mint their assets through Tether. They can then deposit the money to the exchange to get the property.
USDT’s market cap may also benefit from growth in decentralized finance, especially the Compound protocol.
Compound is an Ethereum-based protocol that allows investors to borrow and make money by lending cryptocurrencies. The platform supports assets from Ethereum and BAT to stablecoins like DAI and USDT.
USDT has quickly become one of the most popular currencies on the platform. Last week, Compound reported that more than 150 million USDT dollars were deposited in the protocol.
With the new capitalization milestone, Tether further strengthens the top 3 when it is more than $ 2 billion away from XRP’s market cap.
- Scammers targetting XRP investors with convincing email promising rewards through staking
- Potential distribution pattern as a technical factor that could cause ETH price to reel significantly lower