Over the past two weeks, global markets have been in chaos; along with Bitcoin plunging below $9,000 to a low of $8,400, equities, namely U.S. stocks, have fallen off a cliff. Just today, Mar. 5, the Dow Jones Industrial Average has fallen by 2.6 percent — leaving the index still in the territory of a textbook “correction.”
Although Bitcoin traded in tandem with the Dow Jones last week, analysts are coming to the conclusion that the cryptocurrency has fuel to jet, so to say, past $10,000 in the coming days and weeks. Here’s why.
Bitcoin printing similar bottom pattern it saw in December
While BTC seemingly moves without rhyme or reason, it’s a liquid asset at the end of the day, trading as others in its class does. That means that it follows textbook technical analysis.
Fortunately for bulls, one such textbook predicts Bitcoin is about to surge even higher than it already has over the past days.
Financial Survivalism — the crypto trader accurately predicted that Bitcoin would rally to the $9,000s by the middle of January — recently shared the below analysis, showing that BTC’s chart since the crash from $10,000 is “showing strong signs of a Wyckoff Accumulation.”
A Wyckoff Accumulation is a textbook chart pattern observed by legendary analyst Richard Wyckoff, which sees an asset fall into an accumulation range, then break higher to where it was prior to the drop.
#Bitcoin is showing strong signs of a Wyckoff Accumulation on the 4h chart. ?? pic.twitter.com/11nPj2zTFf
— Financial Survivalism (@Sawcruhteez) March 4, 2020
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Per Survivalism’s analysis, BTC is in the midst of Phase D of the textbook pattern, which will soon be followed by a rally to $9,800, then potentially even higher if bulls pick up the pace from there.
This pattern is especially notable because a Wyckoff Accumulation is what marked the bottom in December 2019, when the cryptocurrency plunged under $7,000 multiple times.
Other bullish signs exist
It isn’t only the forming Wyckoff Accumulation that shows Bitcoin is ready to surge past $10,000.
Earlier this week, Bloomberg reported that with the recent price action, the leading cryptocurrency has managed to retake the lower band of the Trading Envelope Indicator, a “gauge that smooths moving averages to map out higher and lower limits.”
The outlet wrote that this simple technical occurrence may allow it to “test the upper limit, which could bring the coin to around $10,600,” noting how BTC did the exact same in mid-December when it rallied after it breached the lower band.
On the fundamental side of things, India’s Supreme Court just ruled that India’s central bank ban on banks from servicing crypto companies will be reversed. This ruling allows for crypto exchanges to operate in India after an over-one-year hiatus, opening the door to a massive amount of fiat inflows in the coming years.
The post Analyst: Bitcoin is printing the same pattern that marked December’s $6,400 bottom appeared first on CryptoSlate.
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