Bitcoin Weekly Forecast — Slightly Bullish
- Bitcoin climbed above $60,000 at the beginning of a new weekly session.
- Euphoria ahead of the US cryptocurrency firm Coinbase’s listing on Nasdaq remains the key driver behind the upside bias.
- Inflation data releasing later this week expects to provide more cues.
Bitcoin looks all right for this week.
The flagship cryptocurrency opened Monday in positive territory, climbing above $60,000, a level that has notoriously kept the asset from extending its upside bias, primarily as most analysts anticipate the price to hit $65,000 in the coming sessions. As of 0715 UTC, the BTC/USD exchange rate was trading at $60,824.
The early gains in the Bitcoin market came as traders prepared for the shares of Coinbase Global Inc. to go live on the Nasdaq Stock Market on Wednesday. The direct listing expects to bring the institutional investors that always wanted to gain exposure in the cryptocurrency market but remained cautious due to its underlying price volatility.
But with Coinbase, they anticipate profits from a successful cryptocurrency venture that relies on trading volumes to earn its revenue. Meanwhile, it gives those stock investors a reason to ensure that Bitcoin, the world’s leading cryptocurrency, remains trendy enough to feed their upside Coinbase valuation expectations.
Coinbase users have gone 'boom'
+13million users in just over two months, hitting ~56mil at end of Q1 2021 (per their results just announced)#Bitcoin pic.twitter.com/W4xFIdS4dU— Alistair Milne (@alistairmilne) April 6, 2021
That sets Bitcoin to path en route, further driven by expectations of a breakout out of a prevailing Ascending Triangle pattern.
That Bullish Pattern
Bitcoin’s bullish breakout move from its Ascending Triangle pattern has eyes set on $80,000.
The cryptocurrency has repeatedly tested the area around $60,000 as resistance. Meanwhile, each of its rejection from the said level has resulted in a higher low formation. Looking together, it has locked the price inside a right-triangle-like range. Traders see it as a bullish continuation pattern.
Technically, a breakout out of the Triangle pattern pushes the price upward by as much as the maximum distance between its upper and lower trendline. In Bitcoin’s case, the distance comes to be around $20,000. Therefore, if the cryptocurrency breaks above the $60,000-level, its upside target will be around $80,000.
Combined with the Coinbase news, Bitcoin now expects to extend its upside bias until the said level.
Inflation Cues
Bitcoin rallies could slow down should the US dollar continues its recovery trend upward.
The US Consumer Price Inflation data coming this week will shed more light on inflation. If the March readings come higher than anticipated, it could send the US bond yields higher. In turn, that would make the prospect of holding dollars more attractive among foreign investors, sapping Bitcoin’s safe-haven appeal.
Meanwhile, a poor inflation reading would push the US dollar lower. That could prompt US investors to increase their exposure in the Bitcoin market.
Photo by Soroush Karimi on Unsplash