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Bitcoin (BTC) price upside breakout may take shape based on the neckline test

Bitcoin’s price increased from $7,300 to $7,700 in the past 24 hours, sparking widespread optimism regarding the short-term growth. Currently, the coin’s price is testing the neckline to confirm that an upside breakout may take shape. However, a drop below the $7,500 level could lead the coin back to the previous lows.

The 100 SMA is above the longer-term 200 SMA, this shows that the path to least resistance is to the upside. As such, an uptrend may resume. However, the gap between both resistance points is narrowing, showing a weakening bullish momentum.

Additionally, a break above the $7,800 level would effectively exceed the descending one-month trend line that extended from May 5. This also shows that there may be a short and mid-term rally on the way. The corrective rally of the coin from $7,040 ended at $7,500. However, according to the daily chart, and given its history, the coin is likely to gain momentum in the near future.

Most forecasts place the coin’s price at $25,000 by the end of 2018. Also, others are predicting much higher prices in the next few years. For instance, Tom Lee predicted that bitcoin will surpass $25,000 by December, this year. Further, he added that the price will have increased to $100,000 by 2022. Additionally, reports by Fundstart Global Advisors states that the recovery in bitcoin will be pretty fierce.

Additionally, internet madman, John McAfee predicted that bitcoin’s price would increase to $15,000 sometime this month. Many analysts, as well as traders, expected a major surge following the consensus conference due to patterns in the previous years. Nonetheless, the opposite occurred. Other analytical firms such as Trefis Research reduced their bitcoin price prediction from $15,000 to $12,500. This leaves many doubting whether an upside breakout may take shape.

Do you think bitcoin’s price upside breakout will take place in the near future?

Share your thoughts in the comment section below

coinmag

Having contributed to many leading financial blogs, Ken's love for cryptocurrencies and the blockchain technology has him on high alert on all price developments within the cryptocurrency sphere.

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