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Bitcoin Would Rocket to $20k if It Were to Breakout Today

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  • Bitcoin’s price has been struggling to gain any serious momentum over the past few days
  • This has come about due to the stock market’s sideways trading, which is still holding heavy influence over that of BTC
  • The cryptocurrency is facing some heightened selling pressure due to bearish developments within the market, but bulls have been absorbing the heavy influx of sell orders
  • Where the entire market trends next may depend largely on Bitcoin
  • One analyst is noting that he believes it is coiled up to make a big move in the near-term
  • He even notes that this may be the “calm before the storm” and that a serious upside movement could be right around the corner

Bitcoin and the entire cryptocurrency market are currently trading sideways. Both bears and bulls have been struggling to take control of the market’s near-term outlook, which may be due to the stock market’s lack of momentum.

One analyst is noting that Bitcoin could currently be caught within the “calm before the storm” – a sentiment that indicates a big move is coming.

The same analyst further stated that he believes Bitcoin would rocket straight up towards $20,000 if it were to breakout today.

Bitcoin Struggles to Gain Momentum as Entire Market Consolidates

At the time of writing, Bitcoin is trading up marginally at its current price of $11,350. This is around the price at which it has been trading throughout the past few days.

Despite the stock market showing signs of weakness and altcoins drifting lower, Bitcoin still has significant buying pressure due to the bullish developments surrounding its adoption as a reserve asset amongst major corporations.

As it continues consolidating, most major altcoins have been slowly drifting lower as investors try to de-risk their portfolios.

Until BTC pushes higher, this trend will likely persist in the near-term.

BTC Would Rocket to Its All-Time Highs if It Broke Out Now; Claims Analyst 

While sharing his thoughts on Bitcoin’s near-term outlook, one analyst explained that Bitcoin would likely surge towards $20,000 within the next 3 months if it were to breakout now.

“Calm before the storm. If BTC was to breakout today, it would most probably reach its previous ATH of $20k within 3 months,” he said.

Image Courtesy of Mohit Sorout. Source: BTCUSD on TradingView.

Unless a phase 2 stimulus package boosts the stock market and allows Bitcoin to explode higher, it is unlikely that BTC will be able to breakout until after the elections.

Featured image from Unsplash.
Charts from TradingView.





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3 things traders are saying about Bitcoin and the state of the bull market

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Bitcoin’s (BTC) dip below $29,000 on June 22 rocked the markets a handful of analysts to call for a potential drop below $20,000. 

Many traders on crypto Twitter were focused on the formation of a death cross on the Bitcoin chart as an omen for another potential drop in the price but analysts with a more contrarian point of view look at this chart pattern as a signal that it is time to buy the dip. 

Three reasons why some traders still see a bull case for Bitcoin include the appearance of the “spring” stage of the Wyckoff accumulation model, steady buying by long-term holders and the formation of a bear trap at the golden ratio that is similar to moves seen during previous bull runs.

The Wyckoff model says spring has arrived

The Wyckoff accumulation model has been all the rage amongst cryptocurrency analysts over the past month as the price action for Bitcoin has been tracking the pattern relatively closely since the May 19 sell-off.

As seen in the tweet above, Bitcoin’s plunge below $29,000 and the subsequent recovery above $32,000 has some analysts suggesting that the “spring test” seen in phase C of the Wyckoff pattern has been fulfilled. This would indicate that the bottom is in for the current correction and now begins the choppy climb higher.

If this turns out to be true, BTC would enter phase D, also known as the “markup phase” where a new uptrend is established and “pullbacks to new support offer buying opportunities” that are often seen as opportunities to buy the dip.

Related: Bitcoin drops below $36K as century-old financial model predicts big BTC crash

In phase D a breakout to new highs is expected as the cycle completes and prepares to potentially begin again once the move higher is exhausted.

Long term holders are still bullish

Another bullish sign cited by analysts is the steady accumulation by long-term holders.

The Bitcoin long-term net holder position shows that investors actually began to reaccumulate back in late April and they began to significantly increase their activity in May as the price fell into the $30,000 to $40,000. On-chain data shows that these investors have continued to buy into the most recent dip.

This activity suggests that more experienced crypto traders are familiar with Bitcoin’s market cycles and view the current range as a good level to open long positions when fear is high and the sentiment is low. 

The biggest rewards go to those who take the risk to buy an asset amid plunging prices and sentiment, and these are the types of situations where the contrarian traders thriv.

A bear trap lurks at the golden ratio

The third scenario some analysts are focusing on suggests that the current price movements have set up a bear trap that echoes a move seen during the last cycle which involves a pullback to the 1.618 golden ratio extension level which will then be followed by a breakout to new highs.

From this perspective, the market is currently in the awareness phase of the four psychological stages of asset bubbles. After the bear trap occurs, Bitcoin will enter the mania phase where widespread media coverage attracts the attention of new market participants who then chase the price to ever-increasing heights “based on the delusion that the asset will keep going up, forever.”

Previous calls for the possibility of Bitcoin reaching a price of $200,000 by the third or fourth quarter of 2021 by veteran trader Peter Brandt, who was far from alone in predicting its value to surpass the $100,000 mark this year, would suggest that the long-expected blow-off top is yet to come.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.