Analysis on Bitcoin Prices: Will $120,000 Be the Next Highest Price?
As investors prepare for a possible bounce higher, the price of bitcoin is about to dramatically break out from the $100K resistance mark.
Is there a chance for a new record high?Technical Evaluation
By TradingRage's Edris DerakhshiThe Chart for the Day
Since recovering from the $52K support level, the asset has continuously made higher highs and lows on the daily chart. It is currently far above the $100,000 resistance level after breaking above a number of resistance levels.
The market is probably going to eventually firmly overcome $100K and advance towards the psychological resistance zone of $120,000, as the RSI is displaying definite positive momentum.
The Chart for Four Hours
Given that the market has been rising inside a sizable ascending channel, the 4-hour chart provides a clearer picture of recent price movement.
However, the market is currently moving in the direction of the higher trendline and possibly the $105K level in the near future because the pattern's lower boundary has not moved. An aggressive surge higher is probably in store if there is a breakout above the rising channel.
Edris Derakhshi's (TradingRage) On-Chain Analysis of the Coinbase Premium Index
Market movements are primarily the result of American investors, notably US institutions. In order to accurately forecast short-term market movements, it can be helpful to examine their behaviour.
The Bitcoin Coinbase Premium Index, a metric that gauges the relative purchasing and selling pressure on Coinbase in comparison to Binance, is displayed in this chart. While Binance is used globally, Coinbase is primarily used by traders in the United States. As a result, this indicator can show whether American investors are buying or selling more or less frequently than investors in other countries.
The Coinbase Premium Index has shown extremely positive values over the past several months, as the chart illustrates. This suggests that the US post-election buying pressure is probably what caused the market's recent surge. Bitcoin may see more growth as long as this indicator continues to indicate encouraging values.
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