Bitcoin To Hit $ 120,000 In 5 Months, Technical Analyst Says

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Adrian Zduczyk analyzes the bitcoin price chart daily to map prices. He says bitcoin is likely to hit $ 120,000 in the fourth quarter, but only for a few days. The peak will be followed by an 80% to 90% slowdown and a one-year bear market, he says.

Adrian Zduczyk is among the set of bitcoin experts who expect the world’s largest cryptocurrency to trade in six digits very soon.

He describes himself as a technical market analyst and the founder and CEO of The Birb Nest, a subscription trading community. He is also the co-founder of yellowblock_io, another crypto information and education platform. He is widely known on Twitter as @crypto_birb. And, his regular tweets on the daily charts and his technical analysis for bitcoin investors have garnered him nearly 330,000 followers.

Zduczyk tracks bitcoin price trends on a daily basis and predicts breakouts and their precise short and long term impacts. On September 1, 2020, he predicted that bitcoin would hit a record high of over $ 14,600, after hovering around $ 11,000 for several months. Bitcoin hit its price target in early November last year, then tripled in the months that followed.

While his main focus is on short-term charts that map price action over a period of days, he aims for bitcoin’s movement for the remainder of 2021 and told Insider that he is forecasting a price. whopping $ 100,000 to $ 120,000 on bitcoin by the end of the year. He’s not alone: ​​JPMorgan strategists and crypto bull Mike Novogratz, among others, have said they expect a similar move.

And while this is an exciting prospect for bitcoin holders, there is one main line: Zduczyk estimates that this price will only last a few days before bitcoin enters a bear market that will see the price of crypto. drop from 80% to 90%, a range it says reflects previous models since 2010.

In mid-December 2017, the price of bitcoin hit a record high of around $ 20,000 and hovered for about three days before a slowdown that wiped out over 80% of its value in a year.

Zduczyk notes, however, that the further away a price forecast, the less likely it is to be accurate.

How Zduczyk Predicts Bitcoin Movements

Zduczyk uses the brave new coin liquid index (BLX), which determines a US dollar price for a bitcoin at 30-second intervals, to help it chart the future trendline for bitcoin. The index takes into account qualitative and quantitative indicators, including the stability and quality of the constituency and the volume of market participants to calculate an overall fair value of the price.

He also uses historical models to draw parallels. Noting that bitcoin has been in the fourth bull market since its inception, and based on previous trends, he believes the uptrend is far from over for the current cycle. This is because the fourth quarter is generally more volatile than the third.

“I would expect a few months of consolidation, a sideways trend, maybe in the form of a symmetrical triangle chart pattern or some other chart pattern, which potentially in Q4 could bring us a real breakout. on the rise to provide the final push, ”says Zduczyk.

The push that could send bitcoin to six digits would be triggered by what he foresees as its adoption by large companies such as Amazon and Google who could accept the asset as a means of payment for products. This will lead to a snowball effect in which some will react to the news and others to the sudden rise in prices.

“So due to its irrational growth over a short period of time, it tends to interest a lot of investors all of a sudden, doesn’t it? Most people invest in bitcoin or in Tesla stocks. or Apple generally at the highest level, “Zduczyk said.

However, the six-digit breakdown will be wobbly because that extra zero is sort of a psychological anchor.

“Based on the technical projections, the area between $ 90,000 and $ 120,000 looks likely with the main stop, between $ 100,000, as psychological resistance,” Zduczyk said.

While that means a 204% rise from bitcoin currently traded at around $ 39,420, he tells investors not to get too comfortable. Historically, bitcoin has formed these peak bubbles, known as blow peaks where value explodes only to be followed by a steep plunge.

“Usually it usually takes hours, if not days, certainly not months. So I would expect one or two very strong euphoric days, where you could see a very rapid increase, and then right after that, a very sharp drop. “Zduczyk said.

That drop could reach 80-90% and start with an initial drop of 30-50%, followed by a continuous gradual decline over a period of a year, or throughout 2022, he added.

As you move away from the long term outlook, it is also important to understand short term chart trends, as these will act as early signals for the final push.

Zduczyk notes that the current local resistance line, a level above which sellers would outnumber buyers, is around $ 43,000. When this high is crossed on a weekly or monthly basis, there will likely be a period in which a top-down tug between $ 40,000 and $ 50,000 will perform until it crosses the historic high of the bitcoin of about $ 65,000. Once the last point of resistance is crossed, Zduczyk believes bitcoin will rise, with a maximum price of $ 120,000.

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