Analyst Expects Bitcoin To See Bullish Continuation: BTC Taps $6,000
Bitcoin Set To Trend Higher
Over the past week, Bitcoin (BTC) has begun to recover after a brutal 10% sell-off, sparked as a result of news that Bitfinex and Tether (USDT) may be in precarious financial standing. As of the time of writing this, BTC is currently trading at $5,900 on major spot markets, up from the $5,375 seen just seven days ago, a gain of just shy of 10%.
Interestingly, a good portion of these gains has come within the past 48 hours. The recent surge hasn’t been decidedly pinned to a fundamental or technical factor, but it is believed that the news that Ethereum futures may be approved by the U.S. CFTC boosted ETH, and thus the rest of the market.
The initial surge has died down, but a number of cryptocurrency analysts are convinced that a further move higher is inbound. Crypto Thies, a popular trend trader, recently took to Trading View to explain his thoughts on the matter.
Thies explains that there are four factors on Bitcoin’s short-term chart that are currently signaling that BTC could continue higher.
Firstly, there has been a “slight bullish expansion” on the one-day, which suggests an increase in volatility, marked by surging trading activity, and a potential for the cryptocurrency to see “continuation to the upside”.
Next, Thies’ proprietary trend indicator, dubbed “Market God”, has issued a “buy signal” on the three-day Bitcoin chart, which last occurred when BTC was trading at $4,000 in late-March, prior to April’s monumental month.
Thirdly, BTC has broken above its Keltner channels and logarithmic Bollinger Bands, which define approximate trading ranges for an asset, hinting that the cryptocurrency is clearly in a bullish uptrend.
And lastly, the three-day Relative Strength Index (RSI) has broken out of 2018’s range, which, according to Thies, is a sign that bears have lost control of the cryptocurrency wheel. What’s more, the current RSI reading is “knocking on the Priceline door for Q4 2017.” For those unaware what the analyst is referring to, three-day RSI readings of above 80 have only been seen in bull markets. Case in point, when BTC tried to break past $300 after a massive drawdown in 2014 and 2015, the reading failed to move past 80, and only did so months later.
All this is, in Thies’ opinion, that a move above $6,000 may be sustained. Just weeks ago, per previous reports from this outlet, the analyst postulated that a move to $8,400 may be possible. Thies wrote that while he was confident that BTC will eventually return to $4,700, he expected for a Bitcoin to head higher in the coming weeks. He looked to the fact that the Bollinger Bands (BB), a measure used to depict trading ranges, have begun to squeeze on the one-week chart, along with BTC’s two-week candle breaking above its middle BB could suggest a move to the high BB, currently sitting at $8,400, in the near future.
Crypto Market Cap Also In Uptrend
Not only in Bitcoin looking bullish. In another analysis, Thies suggests that the aggregate value of all cryptocurrencies remain in a major uptrend. Not only has there been a massive uptick in volume, but Market God has signaled a buy and the figure has broken above the upper Keltner channel band.