Bitcoin price continues to rise – still entering?

The price of Bitcoin has more than tripled since March. How much room for improvement is there and is it worth starting now?

Evolution of bitcoin prices during Covid-19

Bitcoin has performed very well since the start of the pandemic, from $ 4,000 to $ 14,000 to date. The USD 14,000 mark is very decisive for the market, as this is the second highest level in Bitcoin’s history, which was reached on June 26, 2019 and was only surpassed by the all-time high in January 2018. Since last summer year, the BTC / USD lost in value massively until the last low at 4000 USD.

How can it go on now?

This applies to the view in the rearview mirror (red arrow). Now it’s getting really exciting to see how the market fares at this magical $ 14,000 limit. From a technical point of view, the current dynamism and strength of the trend in the market suggests that the trend will continue and the price should continue to rise (blue arrow forecast).

Depending on the risk appetite, partial insertions (e.g. 50% of the entire position) can be used here, as profit taking often starts close to that price and the price may fall again. This fix can then be used for subsequent purchases.

The next intermediate target is the psychologically important round price levels (15,000, 16,000 USD, etc.). There will always be small and medium corrections along the way. However, these corrections should not be seen as bad as they are a prerequisite for new buyers to enter the market and thus the market to continue growing in the medium to long term. It is important to observe the market accordingly and pay attention to possible trend breaks and then sell if necessary.

A look at the so-called funding rate also gives further impetus for sustained increases in the price of Bitcoin. You can find out exactly what the funding rates are and how they are classified in this article.

Published by

Tom Fischer

Tom is an active trader, investor and analyst with passion. It has been active on the capital market since 2008 and bought the first bitcoins in 2012. Since then, many thousands of transactions have followed across all common asset classes, including cryptocurrencies. In addition to personal interest, after his studies in business administration, various jobs in the financial sector have been added to date to further expand his knowledge.

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