Bitcoin remains one of the most bullish assets in the world—even after its long and dramatic advance. It’s hard to believe that the cryptocurrency, which reached a record high of $118,740 on Friday, was just $4,000 a little more than five years ago. Yet its price action still has explosive upside potential.
Most recently, Bitcoin generated another buy signal at $93,000, which I reported to clients in our April 22 TIV. The weekly chart below shows a breakout from a large three-year rounding base. Within the base, Bitcoin formed what I call a “high-level consolidation,” which is when the price of any asset trades at or near the top of the base before breaking out. It represents a final “refueling” stop before beginning a strong advance.
After reaching $109,0000, Bitcoin spent six months consolidating in a range of $80,000-$112,000—until breaking out on Friday. Just as it did within the huge three-year base, Bitcoin formed another, smaller high-level consolidation.
What makes the current action even more bullish is the fact that each consolidation has been quicker and smaller than the prior one. This is characteristic of powerful advances. Given its quick vertical advance from $80,000-$112,000, my work confirms upside projections to $140,000.
Andrew Addison is the author of The Institutional View, a research service that focuses on technical analysis.
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