Bitcoin price is down more than 10% after breaking new record highs over the weekend. According to a capital manager, the cryptocurrency, which is above $ 52,000, would keep price movement in a long-term rising bull channel.
If so, the first cryptocurrency will stay on course for $ 100,000 or more in the coming months. Here’s a closer look at the bullish uptrend channel that is keeping the ongoing rally afloat and what might happen next.
Bitcoin has to keep Bull Trend Channel at $ 52,000, claims Capital Manager
The speculation about Bitcoin price movements has gone from blows to new highs to corrections. The leading cryptocurrency by market capitalization bled out more than 10% overnight, which could mark the start of a deeper downtrend.
Related reading | Expert opinion: Bitcoin has become a monetary “manipulation knife”
As long as Bitcoin price is above $ 52,000, according to Jeff Ross, CEO of Vailshire Capital, a long-term, parallel bull channel will remain.
The parallel uptrend channel started with a breakout above the previous all-time high of $ 20,000, according to Ross’ chart. Since then, price action has ping pong within the rising, bullish channel, increasing the asset to three times the former peak.
Bitcoin price is still trading well within the parallel bull trend channel | Source: BTCUSD on TradingView.com
“Limited” cryptocorrection within the larger bull trend, track up to $ 100,000 intact
Ross also says that if this uptrend channel holds, Bitcoin price is on track to hit prices of $ 100,000 per coin or higher in the coming months based on the current technical picture.
Basically, Ross says that on-chain metrics like address growth and blockchain activity are bullish and the macro environment for Bitcoin is “wildly bullish”.
Related reading | Bitcoin price could close March with the first quarterly bear signal
The comment likely relates to the fact that the U.S. government has just issued another trillion dollar stimulus package that will see checks appearing on the accounts of potential crypto investors starting this week.
A sustained expansion of the money supply and fresh and free capital that is ready to flow into the market capitalization of the cryptocurrency could further increase the price per coin.
Some technicians also prefer bears, which could lead to interesting and volatile events a few weeks later, and March is drawing to a close.
Indeed, Bitcoin is “wildly bullish” by most standards. However, March is the worst month in the asset’s brief history, and there are bearish differences in quarter-end candle closing for the first time ever.
Can the bullish uptrend channel Ross points out hold up to the above factors, and can stimulus money keep the macro environment far too bullish for bears to take advantage of?
Featured image from Deposit Photos, Charts from TradingView.com