The big question on everyone’s mind is where does Bitcoin (BTC) go next? Using a trading indicator know as Fibonacci levels (Fib levels), we will attempt to make an educated prediction.

What are Fib Levels?

Fib levels are horizontal lines drawn using high and low price points. The gaps between the levels follow the Fibonacci ratios. These ratios should ideally help us identify levels of support and resistance.

BTC daily chart (historic to current day)

Read more about these ratios and Fibonacci levels: https://www.investopedia.com/articles/active-trading/091114/strategies-trading-fibonacci-retracements.asp

Using fib-level’s to predict btc prices.

The image shows the BTC daily chart (historic to current day). As you can see from the chart above, we drew Fib levels from the highest point of the last bull run around $20k to the lowest point in recent times, which was somewhere around $4.3k.

During this bull run, once BTC crossed the $20k mark at Fib level 1, we had an insane run all the way up to $42k which was near the Fib 2.618 level. This rally paused and retraced back to Fib 1.618 which was around $30k. It then tested support before continuing back to 2.618 and then continued towards the next level which was Fib 3.618 and crosses it to create a new all-time high of ~$58k. Repeating this earlier pattern, BTC found support around the previous levels of $42k-$44k at Fib 2.618.

Using the above Fib levels, for instance., we can clearly see a pattern. BTC goes on to test a new Fib level briefly, creating a new all-time high, but it quickly then returns back to the previous Fib level it was at. It then suddenly comes back up to this new all-time high and then rockets up and breaks through the next Fib level, again creating a new all-time high.

We have now come close to the previous highs of $57k-$58k, and while writing the article, Bitcoin hit a new all-time high, crossing $60k. We must remember that the path to 70k might come with some roadblocks and corrections retests of previous levels. Still, assuming that this extraordinary run’s general direction is upward, the next target that Bitcoin would test is at the 4.236 Fib level, putting the number close to $68k-$70k.

Relative Strength Index

Relative Strength Index (RSI) has also been seen to be a robust indicator. RSI is a momentum indicator; as a rule of thumb, levels below 30 are normally considered oversold, while levels of 70 and above indicate an overbought zone. The RSI for BTC is currently at 70 on the daily and weekly charts, showing the buying trend is strong on both time frames.

Fundamental factors

Firstly, Both institutional and retail participation continues to rise. Players like MicroStrategy and GrayScale continue to increase their holding. Secondly, the attitudes of governments also seem positive. The much-hyped-out ban by the Indian government has still not happened. More importantly, the finance minister also showed a positive attitude during a recent interview.

As we can see, the current environment and various trade indicators are still pointing at a bullish BTC trend. This makes us feel very confident that BTC will soon rocket to $70k and beyond!

This article represents the opinion of the author, and in no way should be considered financial advice. Investing in any crypto market has a risk of significant capital loss.