Why Bitcoin Looks on Course To Make Record Highs
Source: Clive Maund
November 6, 2023 (Investorideas.com Newswire) Technical Analyst Clive Maund shares his views on the current state of Bitcoin.
With bank runs already underway ahead of a tidal wave of bank failures that are not being reported in order to stop the general public from panicking, the question arises as to where all the freed funds are going and will go.
With the debt and bond markets in tatters, Treasuries are not an attractive option, except for fools, and the general stock market is too risky, so that leaves cryptos and gold and silver that look set to do very well indeed going forward due to massive inflows of this flight capital, and while the "Big Daddy" of cryptos, "Bitcoin" will not make the sort of huge percentage gains that smaller cryptos will, it still looks set to make solid gains.
On the latest 6-month chart for Bitcoin, we can see that everything changed in mid-October with a powerful rally getting started, which is believed to be due to the aforementioned "funk money" fleeing Banks, some of it going into Bitcoin, and this capital migration which will also go into Precious Metals is thought to be still in its infancy.
As we can see, Bitcoin blew through the resistance at $31,000 - $31.700 as if it wasn't there, and this resistance level has now become a support level. The strong volume driving this advance and the resulting strength in the Accumulation line is, of course, bullish.
By about two weeks ago, following a sharp gain, Bitcoin had become heavily overbought, which is why it stopped consolidating in the small Pennant pattern that it started to break out of to the upside yesterday, following a bullish cross of the moving averages. Given the enormous capital fight from banks that we may soon see, this move is still considered to be very much in its infancy, and we will now look at the long-term chart to get more of an idea of where Bitcoin is headed.
On the 10-year chart, we can see the entire history of Bitcoin and how, as is common knowledge, it has made staggering gains since it came into being. After a big bullmarket that ended in a parabolic ramp in 2017, it went into a severe bear market, and after a long cooling-off period that lasted until well into 2020, it did another moonshot that took it to giddying heights at almost $70,000 late in 2021.
Then it got slammed by another self-feeding bear market that brought it right down to a Little above $15,000, and this time, after bottoming late in 2022, it didn't hang around before starting another bullmarket, although the pattern until the middle of last month could also be considered to be a sort of base pattern.
However, what happened last month looks like a decisive breakout into a new dynamic bullmarket phase with a volume breakout having occurred, a momentum breakout having occurred, too, and a bullish cross of its main moving averages. So it is now well on its way, with the unprecedented factors driving this bullmarket suggesting that it will have little trouble attaining new highs, i.e., getting clear above $70,000 and then continuing to advance. Naturally, this means that many other cryptos should perform well going forward too.
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