In a report titled Bitcoin: 21st Century Gold, Global Head of Citifxtechnicals, Citibank Group, Tom Fitzpatrick predicted that the price of Bitcoin could touch $318,000 by the end of 2021. Fitzpatrick explained that the BTC weekly charts and technical analysis of historic highs and lows had been used to come up with this prediction.
Even new strains of the coronavirus spread and the UK and many parts of Europe reimposed lockdown restrictions, Bitcoin didn’t lose its sheen. The pioneering cryptocurrency breached the $34,000 mark for the very first time since its launch, rising $5,000 in the first 3 days of 2021.
The onset of the pandemic quashed global financial markets in March 2020. The crypto market suffered the same fate, taking Bitcoin prices (BTC/USD) to below $5,000. As the initial shock waned, the global financial markets gradually recovered.
In the crypto space, everyone seems to be talking about Bitcoin. Investors just cannot get enough of the crypto king, it seems. Understandably so. Bitcoin entered the year just north of $7,000 and BTC USD rose more than 200% to hit a new record high of $24,000 on December 21.
Contrary to the impact on many financial markets, 2020 has gone quite well for cryptocurrencies. The Bloomberg Galaxy Crypto Index was up 65%. This meant cryptos offered greater returns than gold, bonds, global stocks, and commodities.
So, you’ve joined the clan and decided to become a trader. Welcome! It’s an exciting and dynamic world you’ve entered. Like all new ventures, you’re likely to make some mistakes along the way. And that’s fine, mistakes are the best way to learn.
Bitcoin, the largest and most popular cryptocurrency, has had a highly volatile trading history. When it was created in 2009, it was traded for almost next to nothing. In fact, in its first real world transaction in 2010, 2 pizzas from a Papa John’s were bought with 10,000 BTC.
The head and shoulder pattern gets its name from its distinct appearance. In this chart formation, there is baseline with 3 peaks, with the one in the middle being the highest (like a head) and the 2 outside peaks being lower than the head but similar in height to each other (like shoulders).