Bitcoin on a Tear, BTC/USD Back in the Race to $100k

Bitcoin has a habit of doing the unexpected. Like what happened on Aug 13–on a Friday.

The moment it broke $46k to register an H2 2021 high at over $47.5k, millions of BTC shorts were, at an instant, liquidated.

Bitcoin Market Status and Performance

This revealed the level of strength and ambition among Bitcoin bulls. Even though the disguised Bitcoin follow-through after $42k wasn’t conspicuous, prices held. It is even after some quarters aired their doubts on what they thought was an overvaluation.

When we hit 45k in Q1, there were many tradfi macro guys long and looking to flip. The 30k dip flushed out non-believers. Natives can now let the Lord take $BTC to the promised land.

— Kyle Davies (@kyled116) August 13, 2021

Nevertheless, the consolidation provided a perfect opportunity for day traders who could deploy various scalping techniques, taking advantage of price movements in lower time frames like the 5 to 15 minutes time frames.

At the time of writing, the Bitcoin price is up double digits in the last week of trading, adding 10 percent against the USD.

Meanwhile, there has been a slowdown after yesterday’s gain, resulting in a bull flag in the 1-HR chart. Even so, trading volumes are above average but consistently high. It possibly indicates confidence among traders who are positioning themselves for higher highs.

Technically, the uptrend is firm as Bitcoin technical analysis in the daily chart. The Aug 13 bar is a high volume, a well-defined conspicuous bar that has led to a bullish engulfing pattern, pushing BTC/USD prices to new H2 2021 highs—a breakout in lower time frames.

As BTC/USD bulls roar, printing a defined trajectory, swing traders can also search for entries in lower time frames, riding the resulting bullish breakout pattern.

In this case, swing trading strategies could come to the rescue of active traders who might want to ride the trend without committing themselves to long hours in front of a computer.

The BTC/USD Road to $100k Intact

According to PlanB’s model, the path of $100k is intact even though some critics maintain that Bitcoin is in a bear market.

#Bitcoin price AND 200 week moving average AND realized cap .. ALL rising🚀 pic.twitter.com/IAtvSUB6Tb

— PlanB (@100trillionUSD) August 13, 2021

Based on the revered on-chain technical analyst, Bitcoin’s realized cap is rising. Typically, a higher realized cap—which multiplies the current BTC price with the recently moved but unspent coins (UTXO)—translates to confident bulls. It shows strength among traders.

Translation:
The capital stored in the #Bitcoin network just broke an all-time-highs.

The network has more money in it today at $47k than it did at $64k in April.

Realised Cap estimates this by summing the price paid for every coin in BTC's circulating supply. https://t.co/a7cCbXAmXS

— Willy Woo (@woonomic) August 14, 2021

At the same time, prices are above the 200-week moving average. The moving average, it should be noted, is one of the best cryptocurrency indicators in use by thousands of traders.

The six-figure target of $100k is the same level Vinny Lingham, the CEO of CivicKey, maintains. After Bitcoin prices sunk to $30k, flushing out weak hands and non-believers, the upcoming rally could see the coin surge to six figures.

If $30k continues to hold, we’ll likely break $100k #Bitcoin this year!

— Vinny Lingham (@VinnyLingham) June 27, 2021

Bitcoin Golden Cross

Another trader notes that Bitcoin is on the cusp of forming a “Golden Cross.” This signal prints when the 50-and-200-period moving average crosses to the upside.

#BTC is on the cusp of a new Golden Cross$BTC #Crypto #Bitcoin pic.twitter.com/zrapDJBjMb

— Rekt Capital (@rektcapital) August 13, 2021

In this case, a Golden Cross forms when the 50-day moving average cross above the 200-day. It is one of the most closely watched moving average strategies, a bullish signal indicating a long-term shift in momentum.

Charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.