Bitcoin price may make all time high if it consolidates within an important consolidation zone for a couple of weeks and break out of this to the upside.
Bitcoin price is struggling to move higher; it seems like the recent high of 13,842 is strong enough to stop the price to move higher. Well, if the price takes out the recent high in less than a month, it is highly likely that we may actually see another record high this year and this can happen as early as the end of Q3.
However, this is also dependent on major important factor, the money printing machines. We all know that the ECB (European Central Bank), the Fed and PBOC (People Bank of China) have used their money printing machines to their optimum level. However, a new war has broken out and the person who is involved in this war does not care about the consequence except getting things his way. This person is Donald Trump, president of the United States of America. His strategies are more about bending others to his will and pay less attention to consequence of these strategies on the domestic economy let alone the world economy.
During the recent G-20 meeting and in the after maths, president Trump is ready to put some extra effort in keep running the money printing machines. He thinks that the dollar is at a massive disadvantage as compared to other currencies. He wants to devalue the dollar, and one of the way is to print more dollar bills.
For Bitcoin, this is a positive aspect, its supply is fixed and as long as the regulators start to show more support, it has only one way to go- upward. Family offices, where the big money is, are not only interested in this space but are very active.
Moving away from the fundamentals and focusing on the price action for the past week, it seems like that the price has started to consolidate and it is a very healthy sign. You do not want the price to continue to move in one direction, especially to the upside, this attracts too many speculators which isn’t a good sign .
Bulls have a lot of things to cheer about: firstly, the price is well above the 50-day and 100-day moving average (on a daily time frame) which confirms the fact that up trend is strongly in place. Another factor is that the price has broken its downward trend line to the upside which is very positive.
However, not all is good when it comes to the price action, the 50-day moving average is catching up to the price fast and the RSI is still in over bought territory. But, this is not as bad it was when the price touched the high of $13,842.
To conclude, the consolidation of the price between 9,000 to 14,000 for another week or two is healthy and a break out of this consolidation zone to the upside would be very positive for the price. This would open the door for all-time high as early as the end of Q3.