PRESS RELEASE: Bitcoin Back On Track To Reach $100K After Healthy Correction

Bitcoin appears to have reclaimed its six-figure forecast target of exploding above $100,000 in the future. The biggest crypto that is gradually getting out of the consolidation phase may soon regain its strength to rally above its record highs. Earlier this January, Bitcoin’s value skyrocketed to hit an all-time high of $41,950 before recording a major 31% correction down to $28,850 in the last few days.

Nonetheless, in most of the trading platforms, such correction is considered healthy since it is within the recommended range. It is normal for the flagship crypto, just like all other assets, to experience 30-40% corrections during a bull rally.

Bitcoin Roadmap To Reach $100,000

On January 8, 2021, Bitcoin reached a milestone of record highs above $41,900. But, a few days later its value abruptly dropped by 28%. This heavy pullback caused many fears and worries among crypto enthusiasts. Market commentators hinted to an end of the current Bitcoin rally since the digital asset has lost over 20%  from its record highs after rebounding in the last 48 hours.

Several weeks ago, On-chain metrics analyst, Glassnode, said that Bitcoin may have retraced by 30% to reach $26,000. Interestingly, now several metrics and technical indicators show that Bitcoin has reached its local bottom and the end of the consolidation phase.

Furthermore, the (spent output profit ratio) indicator has cooled off for the first time since October 2020. Notably, an average trader would not make a profit anymore from selling Bitcoin.

Bitcoin May Explode Past $100K In 2021-S2F Model

The price of the biggest crypto by market cap may explode past $100,000 soon, according to extensive data offered by the S2F model . The stock-flow model, is a predictive tool focusing on Bitcoin price created by planB.

This predictive tool mainly relies on Bitcoin scarcity and its upcoming reward halvings . According to the author, the S2F model charts predict that Bitcoin achieving the $100,000 price is highly likely. The Author wrote:

“The predicted market value for bitcoin after may halving is 1 trillion, which translates in bitcoin price of 55,000. that is quite spectacular. I guess time will tell and will probably know one or two years after halving, in 2020 or 2021”

Stock to flow model is deadly accurate so far.

This is what a programmatic monetary policy looks like.

Predictable and transparent.

No one can change the rules unilaterally because they think they’re smarter than the free market. pic.twitter.com/Kps1AZ7lpD

— Pomp (@APompliano) January 21, 2021

The S2F model projects that the price of Bitcoin could explode to $100,000 before the end of this year. According to the S2F chart, color is used to indicate how far bitcoin is from the next halving. Interestingly, after the red dots, BTC has historically surged higher indicating that the same could happen now and push the Bitcoin price towards $100,000.

What Next After Safe Correction?

Bitcoin now aims for a short-term rebound as it oscillates above $34,500 at the time of publishing. According to the daily market charts, the loss of the 26 EMA has turned out to be the most significant development. That zone has been a strong support level since October 2020. Interestingly, it might indicate that there is a significant shift in momentum and confirms a daily downtrend.

However, despite the recent sell-off, BTC has increasingly pushed the digital assets market cap up over the weekend. If bitcoin manages to regain the 26 EMA, there is a high probability that a breakout towards $38000 will happen. There is very minimal resistance between $34,000 and $38,000.

Furthermore, according to the weekly chart, the pullback is seemingly healthy. For now, the uptrend is not close to being lost and the 12 EMA is still holding strong at $26,330. The general outlook shows that the bulls are still holding. The only critical sign is the TD sequential indicator that appears to be on the limit of publishing a sell signal for the first time since 2020.

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This is a syndicated post from https://www.cryptovibes.com/blog/2021/01/25/bitcoin-back-on-track-to-reach-100k-after-healthy-correction/