Hello ZuluTrade Users!
This is a very popular question among Traders and investors.
Will Bitcoin reach 10k by the end of the year?
Bitcoin remains the king of cryptocurrencies and sets the path for all the rest. It doesn’t matter which timeframe you analyze. The conclusion is the same. The BTCUSD’s view is strongly bullish on long – med – short term.
What about efficient strategies for Bitcoin?
Naturally, the Buy and Hold strategy was/is the most successful of all. However, it’s the hardest to apply efficiently because it needs limitless patience and positive psychology. If we consider where Bitcoin was only 1 year ago (around 800$), we do understand the huge surge in its performance (currently around 8k). This could have been the best investment for any investor by far!
Buy and Hold
Then there is the strategy “buy the dips” as Bitcoin remained bullish all the way up. In this case, we are going to use a simple oscillator like RSI (5). You can easily use Stochastics (5.3.3) too. We have used both of them.
This strategy proved to be amazingly profitable because the bias was highly positive. There was a buying opportunity every time those oscillators were oversold.
Finally, even using an EMA crossover strategy, it was enough to keep you on the right track. In our case, we have used our favorite combination of 5 EMA and 21 EMA.
It gave just four signals during this year but highly efficient.
Using EMA crossover
Obviously, investors who are “reversal lovers” had a very difficult task to complete. BTCUSD performed countless short squeezes smashing all bears many times. You don’t need a chart for this!
What about now?
The cryptocurrency reached a new high point already but let’s start from the long-term view and move to the mid-term view!
We are using the RSI (5) which gave three great buying trade setups anytime it was oversold. However, RSI is recording negative divergences on each new peak of BTCUSD. This has two meanings. The trend is strong but buyers are getting weaker gradually. Bulls want RSI to violate the recent peak in order to eliminate another bearish divergence. On the other hand, if buyers fail, then we may witness one more correction leg in the short future.
The daily chart confirms the weekly one. The price is approaching the next target of 261.8% Fibonacci extension level. If price rejects this level then we may have an opportunity for profit taking or a selling trade setup.
Where are the next upside targets?
The 361.8% Fibo extension is little higher than 10000$. The major psychological barrier. However many Fibo users like to use round numbers as potential targets too. If so, this means that 300% level is around 9000$.
Bitcoin has surprised everyone! Even those who were highly optimistic about cryptos and blockchains future.
So do you think this is possible? Will Bitcoin reach the 10.000$ level within this year?
Share your opinion with us!!