Bitcoin’s Breakout – Will Bulls Charge Towards $80k?


Bitcoin has been on a tear lately, defying predictions of a stagnant market. Despite a minor 0.06% dip in the last 24 hours, the price currently sits at a healthy $67,003.85. In fact, our recent forecast predicted a significant increase of 12.37%, reaching a potential high of $74,989 by today, May 21st, 2024.

However, the most anticipated question that everyone has been looking for is: is Bitcoin going to cross $80,000? This price point holds immense significance – it was Bitcoin’s previous all-time high and now acts as a major resistance level. To understand if the bulls can charge towards this target, let’s delve into the world of technical analysis and see what the charts are telling us.

The Latest Price Movements And Technical Analysis

The Bitcoin market has always seen a surge, and this is nothing short of impressive. Over the past month (as of May 21st, 2024), the price has jumped a staggering 35%, breaking through key resistance levels and defying expectations of a stagnant market. 

Currently, Bitcoin sits at a comfortable $67,003.85.

Now, to truly understand the potential for a breakout towards $80,000, we need to turn to technical analysis. You need to understand some key indicators that can shed light on Bitcoin’s future and whether it will hit $80k or not.

The Moving Averages (MAs)

What are these MAs? These averages help to even out the price fluctuations and provide insight into the general market trend.

To simplify, if you witness a recent upward crossover between the 50-day (for example, $65,770.57) and 200-day (for example, $45,513.01) MAs, it suggests a bullish trend, with the price holding above both averages for a sustained period.

The Relative Strength Index (RSI)

What does an RSI show? An RSI is a technical indicator and it will measure how overbought or oversold an asset is. An RSI that is read above 70 usually shows that the asset  or commodity is overbought but when the number is below 30 then it means the asset or commodity is oversold.

Currently, the RSI sits around 62, indicating a healthy momentum with room for further growth before reaching overbought territory.

The Moving Average Convergence Divergence (MACD)

The MACD measures momentum by examining the variance among the two MAs. A recent bullish crossover on the MACD indicates growing buying stress and the possibility of additional price increases.

The Counter Arguments

Despite the overall uptrend, a minor pullback in the price is always a possibility. This wouldn’t necessarily negate the long-term bullish outlook but could offer a buying opportunity via platforms like Immediate Core for those waiting on the sidelines.

As Bitcoin approaches its previous all-time high, some investors might choose to take profits, leading to a temporary price dip.

While valuable tools, technical analysis indicators should be used in conjunction with other factors like market sentiment and fundamental analysis.

The Bullish Factors Supporting The $80k Target

The recent surge of Bitcoin is not happening in a vacuum. As a matter of fact, there are several positive developments that add to the bullish sentiments and propel the price towards the $80k target.

An Increased Institutional Adoption – We can say that “big money is pouring” into the cryptocurrency market as major financial institutions, corporations, and even hedge funds are increasingly allocating portions of their portfolios to Bitcoin. This increasing institutional adoption demonstrates a growing belief in Bitcoin’s long-term potential as a valuable investment category. With more institutional players entering the market, demand for Bitcoin is likely to rise, putting upward pressure on the price.

The Positive Regulatory Developments – Regulatory clarity is important for widespread cryptocurrency adoption. Recently, we’ve seen positive signs on the regulatory front. Several countries are implementing regulations that aim to legitimize and regulate the crypto market, offering a more secure environment for investors. This can instill confidence in institutional investors who may have been cautious due to regulatory uncertainty.

The Upcoming Industry Events – The crypto industry prospers on innovation and community. Upcoming industry events like conferences and hackathons can generate excitement and positive buzz around new projects and advancements. This renewed interest can attract new investors and propel the entire market forward, potentially benefiting Bitcoin as the leading cryptocurrency.

The On-Chain Data Uptrend – Beyond traditional metrics, on-chain data analysis can provide valuable insights into investor behavior on the blockchain. If on-chain data shows a surge in active addresses or a decrease in the amount of Bitcoin being held on exchanges, it suggests strong buying pressure and potentially limited supply. This dynamic can push the price higher as demand outpaces available supply.

Will Bulls Charge Towards $80k?

The question now is whether Bitcoin can reach the $80k hallmark or not. Why 80k? Because it has been Bitcoin’s previous all-time high and has a significant resistance level.

While technical analysis has given us a promising picture, a closer look gives us a complex web of factors that might influence Bitcoin’s future.

Technical indicators like moving averages, RSI, and MACD are currently bullish, suggesting an upward trend and increasing buying pressure. The recent price surge of 35% over the past month adds weight to this bullish outlook. However, technical analysis alone isn’t foolproof.

Increased institutional adoption by major financial players signifies growing trust in Bitcoin’s long-term value. Positive regulatory developments are creating a more secure environment for investors, potentially attracting hesitant institutions.

However, short-term corrections are a natural part of any market, and Bitcoin might experience a temporary pullback before resuming its ascent. Profit-seeking by investors looking to lock in their profits might also result in a decrease in price.

The Verdict

The $80,000 target for Bitcoin is certainly within reach. The confluence of technical indicators, positive news, and potential supply constraints presents a compelling case for a continued bull run.

However, there will be obstacles on the path forward. Short-term corrections, profit-taking, and unforeseen events are all possibilities.

Prior to making any investment decisions, it is advisable for investors to proceed with caution, conduct comprehensive research, and take into account all relevant factors.

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