Analyst: Bitcoin (BTC) May Break Green Streak In May, But Could Still See $6,400
Bitcoin Could See $6,000 Soon
Over the past 24 hours, Bitcoin has begun to stagnate. While BTC pushed by $5,600 in an unexpected move on Tuesday, Wednesday has seen the asset fall to $5,450 as bulls have eased off the gas pedal. As of the time of writing, BTC is currently down 2% in the past 24 hours, while most altcoins have lost nearly double that.
Funnily enough, one analyst argued that this move solidifies that Bitcoin could soon see $6,400. Josh Rager, as the analyst is known, recently opined that if BTC holds above $5,400, it could rebound to $6,400 over the coming weeks. Rager, an advisor to exchange startup Level, backed his call by looking to the fact that over the past three months, BTC has continually established higher lows without fail, likely indicating that bears are losing grip on this market.
With this in mind, Rager suggested that a possible scenario for this budding market would see BTC rally to a “peak interest area” in and around $6,400. He didn’t explain the intricacies of this prediction, but he explained that a move to the aforementioned level would spark “peak FOMO,” but would likely result in a retracement, whereas BTC could fall back to the mid $5,000s before cryptocurrencies get too overextended, resulting in a “red May.”
Rager isn’t the first to have called for BTC to surmount $6,000 in the coming weeks. In a recent interview with trade publication CCN, Naeem Aslam, the Chief Market Analyst at ThinkMarkets, explained that “technicals are fully supportive” of bulls, meaning that Bitcoin could see $6,000 “or even touch $6,500” in the near future. He looks to the fact that BTC has seen lower lows in this cycle, held critical support, and is looking to past a key resistance level to back this cheery call. Aslam added that with Nasdaq hinting that it is on the verge of launching Bitcoin and cryptocurrency futures, coupled with the fact that shorts are likely soon to get squeezed, he is convinced that the ongoing rally could continue.
By the same token, Crypto Rand postulated that BTC may have entered a “bullish pennant” pattern, marked by a tightening range and higher lows. If the pennant plays out as technical analysis bibles expect, Bitcoin will soon see a massive breakout higher, potentially “over the $6,000 region” as Rand explains. This is notable, as the analyst somewhat called BTC’s previous breakout past $4,200 earlier this year.
Others have been skeptical, however. Horn Hairs recently argued that as BTC’s two-day and three-day resolution is unable to close above the swing low from way back in November 2017, he would be inclined to suggest that a further rally isn’t in store for cryptocurrencies. Horn adds that the fact Bitcoin’s Relative Strength Index (RSI) looks eerily like it did when BTC topped in late-2017 has him wary.
Title Image Courtesy of Mikael Kristenson Through Unsplash