Bitcoin Needs $8,200
Over the past few days, Bitcoin (BTC) bulls have made their presence known once again, boosting the leading cryptocurrency from a multi-week low of $7,450 to $8,150 as of the time of writing this. While this solid price action, which comes after BTC has ostensibly topped at $9,100, has many enthused, the trend isn’t bullish just yet.
In a recent podcast with Forbes contributor Benjamin Pirus, prominent analyst Ledger Status, known as Brian Krogsgard off of the ‘interwebs’, explained that Bitcoin has one more key level to breach before resuming a clearly bullish trend.
In a recent podcast with Pirus (all credit to him), Ledger remarked that Bitcoin is currently in the midst of trying to determine whether it will consolidate at higher levels and eventually push higher, or is topping out to precede a strong retracement. Krogsgard notes that “$8,200 [is a key level] on the daily,” explaining that this coincides with the Bollinger Band midline (a key technical indicator meant to determine ranges, key support/resistance). From Ethereum World News’ point of view, $8,200 also lines up with the 0.786 of the Fibonacci Retracement from $9,100 to $5,000, meaning that it is a level to watch.
If $8,200 is surmounted, presumably meaning a daily close above that level, Krogsgard expects for Bitcoin to begin its next leg higher, meaning a move to retest its year-to-date highs and potentially continue even higher. So, is $8,200 possible?
According to a number of analysts, for sure. Per previous reports from this outlet, the asset’s four-hour chart is looking like an Accumulation pattern laid out by technical analysis guru and legend Richard Wyckoff. If the textbook pattern plays out in full, analyst Financial Survivalism explains that he expects for BTC to break past $8,040, fall back to $7,700, and then return back to the mid to high-$8,000s.
This isn’t the only bullish sign that the analyst observed. In a subsequent tweet, Survivalism explained that if the nine four-hour exponential moving average crosses above the 50, Bitcoin will be “fully bullish” on the four-hour chart, implying “another leg up in the market.”This has yet to happen, but if BTC keeps the upward pressure, it will likely happen within the coming day.
Survivalism isn’t the only one that is short-term bullish. In a recent tweet outlining an astute observation, analyst Filb Filb noted that movements in Tether’s market capitalization have accurately predicted moves in BTC. With the number of Tether rapidly rising, recently surmounting a jaw-dropping $3 billion, Filb seems to be predicting that Bitcoin will soon shoot higher. While Tether was found not to directly be manipulating markets, more USDT in circulation is supposed to mean more money flowing into this space.
Pullback Still on the Table
Krogsgard was sure to leave skepticism on the table, however. Despite the fact that he expects for Bitcoin to likely revisit $9,100 and potentially move even higher, he reminds listeners to Pirus’ podcast that he “I wouldn’t say $8,000 bitcoin is a particularly attractive place to buy.” He adds that the cryptocurrency market has evidently moved fast this year, meaning a that an eventual correction to lower levels, like the $6,000s, is more than likely. Put best,
Even in bull markets, corrections of 30-40% are normal, so I’m waiting for when that occurs. It could be now, with an outside chance of another high, maybe into that $9,600 range first.”
When that comes, though, no one is all too sure.
Photo by Chris Liverani on Unsplash