$10,000 On The Table For Bitcoin
According to a number of analysts, Bitcoin (BTC) is still poised to reach $10,000 in the near-term, despite the recent stagnation. In a recent tweet, Moon Overlord, a popular trader and analyst, noted that Bitcoin’s chart is still exhibiting clear bullish tendencies.
Overlord points out that BTC is still bullish, as it trades above key resistance levels at $7,000, $7,300, and $7,400; and continues to trade in two clear parabola patterns, which have both yet to go entirely vertical (signals the end of the parabolic trend). This, coupled with the fact that Bitcoin markets on BitMEX have recently seen their biggest periods of buying volume ever, lead Overlord to suggest that Bitcoin could soon break above the local resistance of $8,400 to $8,500, and then begin a rally to the $10,000 price point. That could be where the rally ends though, as quintuple digits are where BTC topped about one year ago. But, we can reaccess the situation once we get there.
Overlord isn’t the first to have made such cheery suggestions. Speaking to industry publication CryptoBriefing, Alex Mashinsky, an early developer of Voice Over Internet Protocol and founder of the cryptocurrency startup Celsius Network, divulged that he expects for BTC to soon touch $10,000. He looked to the fact that the long-to-short ratio on certain platforms was still short-heavy, meaning that there are those on the short-side that have yet to sell. Thus, he concluded:
“So I think we’re going to go above ten thousand before we see a correction. Because these guys are going to be squeezed out. We haven’t seen the pain yet. We have not seen them cover. They have to cover, and when they cover, they buy bitcoin.”
This is, of course, in reference to “short squeezes”. For those unaware, when shorts (bets on the price of BTC or other assets going lower) on futures exchanges close their positions or get liquidated, they are mandated to purchase the short-sold asset on the spot market. This theoretically causes an influx of buying pressure, resulting in a move higher if volumes are high enough. In fact, a massive short squeeze that took place over a number of days is what some analysts, like Willy Woo, believe are what caused Bitcoin to move above $7,000 and $8,000 is rapid succession.
And on the technical side of things, analyst Galaxy has opined that BTC is currently trading in a symmetrical triangle pattern, which studies state has a 60% chance of leading to a price breakout. If this breakout occurs, the analyst suggests that a move to $10,000.
Some have been a bit more cynical though. Just the other day, Bitcoin Bravado’s Jack, drew attention to a number of indicators and signals accentuating that BTC isn’t as bullish as some paint it to be. He exclaims that volumes are slowing, longs are consolidating at futures platforms, and that BTC has reached its “FAPFAP” bear market average level, which is an occurrence in the charts of gold, S&P 500, and even Bitcoin in its history that have always resulted in short-term corrections and bear reversals.
Photo by André François McKenzie on Unsplash