The price spiked over 1500% in just over a year. Is it still attractive to buy?


Bitcoin is the world’s leading cryptocurrency that was invented back in 2008 by a person or a group of people called Satoshi Nakamoto. The currency started operating officially in 2009.
Bitcoin is a decentralized cryptocurrency that doesn’t operate through a bank or another intermediary and it can be sent from one user to another through the peer-to-peer Bitcoin network. In fact, transactions are being verified through cryptography and are being recorded in a public distributed ledger.

Overall, Bitcoin’s success since its foundation has been a huge success. Especially in the past 4 years since 2017 more investors and traders have been attracted by Bitcoin’s features and great expectations for the future. We have seen some very large bullish movements as well as huge corrections especially since 2017. For example, after a massive rally from $2500 in the 2nd part of 2017 towards the $19,000 highs in early January 2018, the crypto market crashed significantly and Bitcoin dropped towards the $3,000 mark again in 2019.


However, it is important to say that the market is different now compared to the 2017-2018. The reason for that is because many institutional investors started appreciating the applications and the value behind the leading cryptocurrencies out there and the blockchain technology as a whole and even investors that had been widely criticizing BTC and the whole crypto market as a whole have started talking positively about it, appreciating its great expectations for the future. That in turn has been having a massive bullish effect on the price and is among the main reasons why BTC has gone up over 1500% in the past year.

Chart: BTC/USD


In the past 14 months since the middle of March last year we have seen Bitcoin in a massive bullish rally, bouncing from the $4,000 lows to reach the $65,000 highs in the middle of April 2021. Since then though, we have seen the price trading in a range between $47,000 and $58,000. Overall, the expectations for Bitcoin are a lot higher for the future. Many professional investors and traders claim that it would reach $100K by the end of the year, while others are expecting even $150K by then.
Yet, many analysts claimed it would reach $50K-$100K when it was trading at the $19K mark 3 years ago but it then dropped back to only $3K. So, we wouldn’t be giving such high expectations but rather look to capitalize on a potential BTC movement in the short to middle term.

The daily chart shows the first support at $53,000 where some buying pressure is likely to take place in case the price makes a bit of a profit-taking correction in the short-term. Should the price break that level to the downside, we would expect to see more buying interest at the psychological support at $50,000 where a lot more buying interest is expected and the price could easily bounce back up from either of these two levels. 



Conclusion


Overall, we have been huge supporters of Bitcoin and the blockchain technology in general and believe in its great applications in the future. We have actually been investing in BTC for quite some time now and believe all those little profit-taking corrections are giving us great entry levels for our buy positions and a chance for us to buy at a strong support level and make high profits to the upside, following the overall bullish trend.

We would wait for a little profit-taking correction and start buying BTC at $53,000. Should the price break that first support at that point, we would be interested in buying more at the next strong support at $50,000 where more buying pressure is expected at that psychological level and a very likely upside movement could follow.

Our initial profit-taking target is set at $62,000-$65,000, followed by the next target at $70,000-$75,000 where we would be fully cashing in our profits and waiting for another profit-taking correction that could give us a chance to buy the leading cryptocurrency at a strong support mark again in the future.




Sincerely,

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