A $21K BITCOIN POSSIBLE ON BULLISH DIVERGENCE HOPES, MASSMUTUAL INVESTMENT

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A $21K BITCOIN POSSIBLE ON BULLISH DIVERGENCE HOPES, MASSMUTUAL INVESTMENT

Bitcoin eyes a sharp rebound as it trades near a confluence of technical supports made stronger by external fundamental factors.

The flagship cryptocurrency is carving out what appears to be an Ascending Channel formation, attested by more than two confirmation of its upper and lower trendlines acting as resistance and support, respectively. As of this Friday, BTC/USD is testing the support trendline for a potential retracement move.

A baseline of another channel formation — a Descending one — is also converging with the Ascending Channel’s support trendline. That doubles up the area’s strength while protecting Bitcoin from further bearish assaults. Tripling up the power is a visible divergence between the cryptocurrency’s rising volume and declining price. It is—technically—bullish.

Nevertheless, Bitcoin risks an extended downside correction below the supposed price floor should more traders decide to secure their profits. Many analysts agree that the cryptocurrency could fall towards the mid-$16,000s but add it would undergo a major retracement towards its previous high, near $20,000.

The Ascending Channel formation suggests the same. Previously, each of Bitcoin’s attempt to close below its support trendline has met with strong buying pressure from bulls. As a result, the price pares its losses and rebounds to as far as the Channel’s upper trendline.

Considering a fractal-repeat, BTC/USD may undergo a reversal on the current support trending retest, towards the Channel resistance. That points to another all-time high formation around $21,000.



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