Bitcoin Continues Higher, But It Isn’t A Bull Run Yet
For once in a blue moon, Bitcoin (BTC) has somehow managed to rally for a number of weeks without a drastic sell-off. And some believe this move to the upside is set to continue.
While some argue that the cryptocurrency is home free, as it has surmounted the ever-important $4,000 level, which many see as a key psychological barrier, all eyes are currently on $4,200. Industry pundits remark that what happens there will dictate crypto assets’ price action for the coming week.
Alex Krüger, for instance, noted that while the current bear trend has been going on for over three months now, breaking above $4,200 will mark the end of this part of the cycle. He explains that this is a simple matter of historical trends, touching on Bitcoin’s low, higher low, and then a potential ongoing breakout.
Longer-term, $4,200 may be of interest too. Halo Crypto, an analyst who recently claimed that Cardano’s rally could precede a similar move for BTC, explained that the stakes are mounting for the crypto market, looking to the fact that there’s a rally on decreasing volume, a one-week RSI reading at a historical level of importance, and that BTC is facing a “diagonal trend line” at, you guessed it, $4,200.
CryptoBirb, too, sees $4,200 as a point for Bitcoin traders to watch. As reported by Ethereum World News previously, Bitcoin has been testing a resistance trendline, which haunted BTC at $8,500, $6,500, and potentially at $4,200 now. Thus, the trader explained that if BTC can rally past $4,200 and $4,400 in rapid succession, a move to $5,200 could easily be in order due to a gap in order book resistance in the $4,500 to $5,000 range. Even Fundstrat Global Advisors, a New York-based market advisory boutique run by Tom Lee, once looked to $4,200.
With all this in mind, some believe that if Bitcoin can convincingly surpass $4,200 with convincing technicals, especially volume and momentum, and a nice influx of industry developments, it might be finally fair to claim that the crypto bear is heaving its last breaths.
One. More. Selloff.
Sentiment sure is buoyant, but one analyst, Murad Mahmudov, has been eagerly calling for one final sell-off. In a number of comments, he has drawn attention to the $1,700 region as the potential point at where Bitcoin will finally bottom. In one comment, he wrote that for BTC to fulfill a repeat of 2014-2015’s cycle, a period of “Final Capitulation” will need to occur, whereas prices could fall 50% from the seeming lows ($3,200 region). Another time, he remarked that if cycles prolong each and every time, BTC could likely have a few months more of pain before an eventual recovery. Again, he looked to the high $1,000s.
Photo by Mpho Mojapelo on Unsplash