The cryptocurrency market is on a positive trajectory with a breakout in the 78-week chart; this marks the beginning of the third bull wave. Additionally, Bitcoin’s correlation with the S&P 500 (SPX) is presently the lowest in four years, solidifying its position as a reliable investment hedge.
Adrian Zduńczyk, a respected crypto trader, offers a comprehensive technical analysis of Bitcoin’s price trajectory. He predicts that Bitcoin will surge to $50k in the next four months, with a remarkable 43% increase from its current BTC price.
Meanwhile, the upcoming anticipation of ETFs (Exchange-Traded Funds) approval and the scheduled Bitcoin halving event in April could also play a substantial role in Bitcoin’s price trajectory.
Technical Analysis and Chart Patterns
To solidify his prediction, Adrian Zduńczyk has offered technical analysis insights that indicate an upcoming price surge.
In October, Bitcoin’s trading volume surged, indicating heightened market activity for November. The increase in trading volume often signifies growing interest and participation, elements favourable to a bullish trend.
Additionally, indicators such as the Relative Strength Index (RSI) show promise. The RSI reveals signs of an impending breakout, hinting at substantial price fluctuations in November.
Golden Crosses Historical Trends
With the occurrence of a “golden cross” signifies a dominant bull market, marked by the 50-day simple moving average (SMA) overtaking the 200-day SMA in an upward trajectory.
However, the current numbers show the 50-day SMA at $27,714 steadily rising, while the 200-day SMA stands at $28,174. With such bullish sentiment in the market, it is expected that the next Bitcoin price target is approximately $40,000
Short-Term Price Correction
Adrian Zduńczyk further sheds light on the possibility of a short-term price correction in the upcoming time. In the event of such corrections, Bitcoin’s price may dip to a range of $33,400, characterized by consolidation and tightening momentum bands.
Meanwhile, the key support for Bitcoin remains at $33,000, indicating that the bulls are firmly in control.