Bitcoin

Here’s why analysts believe more benefits are imminent

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After trading below $ 9,000 since Wednesday’s blow-off top, Bitcoin has bounced back strongly in recent days, culminating in a breakout in the past hour.

The cryptocurrency is trading for $ 9,150 at the time of this writing – more than 9% higher than the post-rally lows of $ 8,400 and an increase of approximately 4% in the last 24 hours. Still, BTC is still a few hundred dollars behind the $ 9,500 peak.

Bitcoin chart breakout over $ 9,000

Diagram from TradingView.com

The Bitcoin outbreak is despite a series of declining signals that the cryptocurrency has printed in recent days: 1) a 1,000-bitcoin sales wall – worth over $ 8 million – that appeared on Binance on Saturday morning, and 2 ) GTI Global from BTC The strength indicator moves beyond 70 and indicates exhaustion of the bull trend.

Bitcoin has room for rallies

The move beyond $ 9,000 is far from the end of the uptrend, according to top analysts.

A well-known dealer noticed that there is currently a strong confluence of reasons to be bullish on Bitcoin, even with the declining signals above seen in the charts:

  • The funding rate for BitMEX, the amount longs pay for short positions, and the premium index, the difference that people pay for Bitcoin for BitMEX compared to BTC’s index price, are “still negative”. This suggests that longs are not yet overfunded.
  • Bitcoin trades above the annual volume-weighted average price.
  • BTC is above the 200-day moving average.
  • The one-day Ichimoku cloud has become bullish.
  • The block reward halving of Bitcoin is only 10 days.

The trader noted how strong the current bull trend is, adding that while you “don’t call and short-circuit THE Top, you can save yourself a lot of potential headaches just by waiting for the 1D market structure to break.”

The optimism has been confirmed by other traders, such as the one who divided The graph below shows that Bitcoin’s recent price movement is incredibly similar to what it was in August 2015, when the cryptocurrency experienced a parabolic outbreak of macro lows.

If Bitcoin continues to follow this fractal up to a T, it could reach $ 14,000 in about a week, which would result in Bitcoin being halved and then sold out by miners who drop coins.

Long-term trend is also positive

The long-term trend of the leading cryptocurrency is also starting to develop positively.

In a cryptocurrency research report released on Thursday, David Grider – the leading digital strategist at Wall Street analyst Fundstrat Global Advisors – said his company was optimistic about Bitcoin in the future, citing halving as a positive catalyst:

“We are optimistic over the next 12 months and expect prices to continue to rise.” [halving] and possibly afterwards. “

Marketwatch, which covered the note, suggested that Fundstrat would almost double the cryptocurrency to $ 14,350 over the next 12 months.

Photo by Olav Tvedt on Unsplash

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