Bitcoin Set To Run
Bitcoin (BTC) has just closed its monthly candle, touting an impressive 63% gain. This is crazy, especially considering that just a few months ago, cryptocurrency bulls were nowhere to be seen, wallowing in a bear market-induced depression. Now, however, bulls are dominating the market with an iron fist. This has led one analyst, Roger Quantrillo, to make some surprisingly optimistic predictions.
The trader recently suggested that due to the fact that Bitcoin closed its monthly candle above $8,300, he would be inclined to suggest that BTC could soon go “straight to $14k/$15k or more in the next one to two months”. This would represent another 60% move if it occurs. The reason why Quantrillo thinks this is a case is likely to do with Bitcoin’s previous cycle, and how BTC reacted to the pitchfork pattern (seen below).
The last time BTC posted a 60%+ monthly candle in a bear market recovery, and closed above the dotted red line, BTC spiked by hundreds of percent in the month that followed. Thus, if history is any indicator, the coming month or two could be absolutely monumental for the digital asset markets.
Indeed, many see Bitcoin’s recent close as a massive event. Per Josh Rager, a well-known crypto trader and analyst, if BTC closed May above $9,000, it would have seen a 70% gain in a month. If this was achieved, Bitcoin would have seen its largest green candle (open to close) since November 2013. This, of course, didn’t happen, with BTC falling short by around $400, but Rager still admits that “May 2019 has been a tremendous month” for the cryptocurrency market. But do other traders share in his optimism that Bitcoin is ready to boom, breaking the expectations of everyone? Well, apparently that answer is a yes.
Ready To Run
In a recent TradingView analysis, Filb Filb remarked that in early-2018, 7,300 BTC worth of shorts opened on Bitfinex in the $11,600 to $13,800 level. Assuming that some of these positions have yet to close, Filb explains that as the cryptocurrency market continues to push higher, shorts will become increasingly under pressure to cover, thereby buying BTC spot and pushing up prices as a result.
What’s more, he expects for the “Fear of Missing Out” (FOMO) and the 0.618 Fibonacci Retracement level to act as a magnet, potentially giving Bitcoin the legs to run to the $12,000 range. With this, he concludes that “Bitcoin has enough in the tank to break $10,000”.
There may also be fundamentals that back such a move. Speaking to Bloomberg, Jehan Chu of Kenetic Capital explained that after Bitcoin’s been in existence for ten years, its “story has [started to] become reality.” As he put it alternatively, people are coming to the realization that cryptocurrencies are here to stay. He looks to the fact that you see Facebook, JP Morgan, Fidelity Investments, and other households names in Silicon Valley and on Wall Street effectively endorsing Bitcoin and similar technologies. What’s more, investors across the board are purportedly looking for more risky plays, and, the block reward halving is on the horizon.
Photo by André François McKenzie on Unsplash