After a jaw-dropping 30 percent rally in two weeks, Bitcoin has finally begun to take some time to cool off. Over the past two days, the cryptocurrency has found itself trading within a tight $350 range, bouncing between the resistance of $8,900 and support of $8,550.
While there are some analysts saying that BTC failing to break above this 4 percent range is a clear sign of a bearish reversal back to the $7,000s and maybe even lower, an eerily accurate cryptocurrency trader has begged to differ.
Why BTC may soon blast higher towards $11,500: top analyst explains
Few analysts have called Bitcoin’s recent price action as well as Dave the Wave.
The pseudonymous trader in the middle of 2019 claimed that he expects for BTC to drop by dozens of percent to bottom in the mid-$6,000s, which it did months later. Mind you, he made this harrowing prediction when investors were high on life, claiming that $20,000 and beyond was imminent.
Then, after he nailed that call, Dave went on to state in mid-December that he expected for BTC to break out near the start of 2020. And that it did, with Bitcoin surging 30 percent higher to current levels as aforementioned.
And Dave’s back again. This time, he says that Bitcoin is preparing to break higher than it already has, drawing attention to the below chart which shows BTC is trading in a clear uptrend. Per his analysis, the cryptocurrency’s price will likely surge another 32 percent to $11,500 by the middle of February—just four weeks away.
Pennant starting to look more likely with price staying high here. Freebie from my alts page… pic.twitter.com/IZQAJIrgf0
— dave the wave (@davthewave) January 17, 2020
https://platform.twitter.com/widgets.js
Backing this prediction, Dave looked to a confluence of factors:
- Bitcoin recently broke above a descending channel that has constrained price action for more than six months, marking a large win for bulls.
- BTC rallying to $11,500 would satisfy a historical chart pattern
- The weekly Moving Average Convergence Divergence (MACD) is starting to trend higher once again, which was a signal seen in 2015/2016 as BTC moved from a bear market to bull.
Dave’s belief that Bitcoin will soon move above $10,000 has been confirmed by another pseudonymous trader, Filb Filb, who in October posted the below chart. This analysis, based on miner profitability amongst other factors, accurately called BTC’s sudden vertical spike to $10,000 then the subsequent drop to the low-$6,000s.
The same chart now suggests BTC will push above $10,000 in January or February of 2020. (Ignore the May 1st, 2020 marker.)
Fundamentals suggest Bitcoin price upside too
It isn’t only the technical indicators that suggest Bitcoin’s return to a bullish state is imminent.
Over the past few weeks, as 2019 has transitioned into 2020, analysts and executives across the industry have thrown out their expectations for the cryptocurrency market in 2020. Interestingly, the consensus is overwhelmingly bullish.
In a research note, Fundstrat Global Advisors, a top market strategy and sector research company based in New York, said that it expects for BTC to rally by over 100% in the coming year due to three fundamental reasons:
- The Bitcoin halving: In around four months’ time, Bitcoin will see what is known as a “halving” or “halvening,” when the block reward of Bitcoin gets cut in half, effectively resulting in a 50% decrease in the inflation rate of the leading cryptocurrency. Analysts, including Fundstrat, say that this should cause a supply crunch in the cryptocurrency market that could push prices dramatically higher.
- Geopolitical risk: As normal, many countries across the world have been worried about potential geopolitical conflicts. Fundstrat believes that global conflicts could push BTC higher in 2020.
- 2020’s presidential election: Fundstrat did not expand on why they believe the upcoming presidential election for the U.S. may act as a boon for the Bitcoin market.
The post Eerily accurate trader who called Bitcoin’s $7,000 drop says 30% rally is next appeared first on CryptoSlate.
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