Bitcoin analysis, next target is $ 77,000

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News of the spread of a new variant of COVID19 hit global markets on November 26, and the cryptocurrency market was no exception. The reason for such a reaction is that the Delta variant, which accounted for the majority of Covid cases, is still spreading and is not fully studied. Not only are the two additional mutations of the Delta variant, but another COVID19 mutation is now spreading.

The effectiveness of available vaccines has been repeatedly questioned against the Delta variant and its mutations, anxiety is growing with the spread of Omicron globally. Japan has already imposed restrictions on foreign travelers for a month and the other countries that have suffered the most from Covid19 outrage will most likely follow suit. We could revert to a lighter version of the global lockdowns from early 2020 if the new variant proves resistant to available vaccines.

Nonetheless, the Fed is concerned about the spread of the new variant and the path of economic recovery and inflation for the Federal Reserve is once again “uncertain”. Fed President Powell confirmed in his speech on Monday: “The recent increase in Covid-19 cases and the emergence of the Omicron variant present downside risks to jobs and activity economy and increased uncertainty for inflation. ” Looks like the Fed has found its best tool to contain the surge in unrestrained inflation.

The Federal Reserve will likely reconsider its stimulus package and likely some changes to the previously scheduled dates will be introduced. Until then, markets could focus on risk hedging assets like gold and Bitcoin. Since the pandemic, Bitcoin has proven to be the most efficient investment based on return on investment, so this could be the best time for Bitcoin’s new uptrend.

Ever since the virus caused lockdowns around the world in early 2020, the price of Bitcoin has been responding to discoveries of new variants. The prize is not entirely awarded to the new variants but to fear and government actions.

For example, the first 4 variants had the highest impacts because the world was stuck and the world situation was critical.

The Delta variant was discovered in April 2021, the restrictions were less stringent, and other factors caused BTC to decline. When the Delta variant was discovered, the World Central Banks declared that the economic recovery was predictable and under control. However, the Omicron is now a game-changer, as uncertainty increases again.

Bitcoin Sentiment Indicators

If the locks are imposed, we will see high volatility in the cryptocurrency market and a new uptrend. Coins from the Metaverse projects will be among the trendy coins in the cryptocurrency market, but the path will be strictly traced by Bitcoin.

One of the primary metrics used by cryptocurrency investors is the Bitcoin Fear and Greed Index.

The sentiment of the cryptomarket has been in fear since last week. The fear indicator is mainly used by professional cryptocurrency traders as a signal to buy.

Bitcoin Monthly ROI Graph

The monthly return graph is used as one of the indicators to help identify Bitcoin price action within a month. The historical monthly yield helps identify whether the Bitcoin price will close above or below the monthly open and what Bitcoin’s price action plans are for the next month.

Bitcoin chart analysis

The daily BTCUSD chart signals a continuation of the upcoming uptrend of BTC. The November 10 correction appears to be halting soon, on the verge of hitting the 0.5 Fibo level.

The correction of November 26-28 was also a further test of the previous major resistance of September 7 as support. This is another advantage towards continuing upwards.

The juxtaposition of Wave 3, followed by a correction similar to the current correction, leads to an upcoming target for Bitcoin at $ 77,000. The MACD and RSI indicators on a BTCUSD daily chart are very bullish. The MACD has turned higher and is about to cross the signal line, while the RSI is at its lowest support level.

In order to continue the bullish trend, Bitcoin must close above this dynamic resistance, see the 4H BTCUSD chart below.

This 4H chart suggests that Bitcoin is on track for a slight correction locally ahead of the possible uptrend, as the RSI is near the overbought zone. Confirmation of Bitcoin’s next bull run will take place when BTC breaks through and closes above this dynamic resistance. A retest of local support at $ 55,800 is also possible before the next jump.

It is now essential to follow the evolution of the new variant of Covid19 and the responses of governments to its development. Mr Powell will testify before the Joint Economic Committee today and present an economic outlook, mainly by repeating what he said earlier yesterday, November 29, 2021.

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