- Bitcoin Price is ranging inside Jan 6 high low
- Russia may convert their USD Reserves to BTC to bypass sanctions
- Trading volumes are low
Technically, BTC is bearish from a top-down approach but bullish in the short term. We expect ecstatic buys if bulls drive prices above $4,500 and, in that case, first targets will be at $6,000.
Bitcoin Price Analysis
At the time of press, BTC is up 5.3 percent against the USD in the last seven days. Nonetheless, we are net bullish and expect prices to recover thanks to favorable macros and accompanying candlestick arrangement that shouts bullish.
From the chart, it is clear that prices are consolidating. Depending on the breakout direction, the short-term trend will determine whether we have a distribution or an accumulation. If prices edge higher in line with mid-December bullish thrusts, then the double bar bull reversal pattern of the week ending Dec 23 would be correct.
On the fundamental front, news has it that the Russian government has plans in place to diversify their cash holdings into Bitcoin in case sanctions are imposed.
While there are other reserve currencies, the state level adoption and this change of heart by Russia won’t bode well with politicians. However, on matters crypto and Bitcoin, any form state adoption will open up doors for Bitcoin.
According to reports, Vladislav Ginko, a Russian Professor with ties to the Kremlin said Bitcoin is the only way of by-passing damaging US and NATO Sanctions. Should there be such orders, Russian elites will quickly diversify their cash reserves into Bitcoin further cementing the coin status as a duo asset that can serve as a medium of exchange and at the same time a store of value.
Remember, reports have it that Russia is sitting on more than $450 billion of reserves. If the government is forced to liquidate any amount, then BTC would surge to new highs.
Meanwhile, BTC/USD prices are ranging in lower time frames and virtually unchanged in the last day. Unless otherwise there are dips below $3,700, our previous trade plans are constant.
All in all, prices are oscillating inside Dec 28 high low is bullish from an effort versus result point of view. Up-thrusts above $4,500 would spur demand, and as per our projection, BTC will likely surge towards $6,000.
Like yesterday, transaction volumes are light pointing to market participation. To reiterate, upswings lifting BTC above $4,500 should exceed 120k or above the current average of 15k.
All Charts Courtesy of Trading View–BitFinex
Disclaimer: Opinions are those of the author. Do your Research.