Why Analysts Think Bitcoin (BTC) Will Rally to $11,500 But Fall to $8,300

Why Analysts Think Bitcoin (BTC) Will Rally to $11,500 But Fall to $8,300 13

Bitcoin (BTC) has been on an absolute tear as of late. After wallowing under $8,000 a few weeks back, the cryptocurrency has embarked on yet another rally, quickly moving past $9,000, to $10,800, where it stands as of the time of writing this. With this, BTC is up over 20% within a week’s time, marking one of the best weekly performances seen this year.

Why Analysts Think Bitcoin (BTC) Will Rally to $11,500 But Fall to $8,300 14

While BTC has shown signs of temporary weakness, as made evident by rejection at the $11,200 mark and a rapid sell-off to $10,300, some suggest that in the coming days, Bitcoin may continue higher. Let’s take a closer look at what analysts are saying.

What’s Next For Bitcoin

Although analysts in financial circles, especially cryptocurrency, often have different thoughts on what will happen, a number of commentators have recently converged on one scenario that they believe is most likely to happen. This scenario, as first explained by well-followed analyst Bagsy, can be seen below.

He and his peers believe that Bitcoin will rally to hit $11,500, a key resistance; fall to $8,300 to retest support and establish a strong base; and then surge past $11,500 to hit $13,800, the next level of importance. This series of events could, according to Bagsy’s model, end in September to October.

Why Analysts Think Bitcoin (BTC) Will Rally to $11,500 But Fall to $8,300 15

As explained, Bagsy isn’t the only one with these thoughts on Bitcoin’s future price action. In a similar tweet, RedXBT, also known as “green”, explained that he truly believes the aforementioned price action could play out.

Backing his semi-prediction, he explained that if you took price action from June 2018 to December 2018, flipped it, and then applied it onto the current BTC price action (this is what’s known as a fractal), you would have a test of $11,500, rejection to $8,250, and then surge to $14,000 and beyond — almost exactly like Bagsy explained.

Faster, Harder Rally?

Interestingly, however, many are sure that such an extended period of consolidation won’t take place though. Some are sure that now $10,000 is breached, new highs are in store. More specifically, Tom Lee, the head of research of Fundstrat Global Advisors, has suggested that a move to five digits will catalyze an influx of “Level 10 FOMO”. As he put it on Twitter, “[$10,000] will see FOMO from those who gloated about the 90% crash in BTC… and those who saw Bitcoin dead as forever.”

So, how will this FOMO materialize in prices?

Well, as Lee explained in a recent podcast with Wei Zhou, the chief financial officer of crypto giant Binance, once $10,000 is breached, all hell will break loose for the cryptocurrency market. This means that there will be a “fast and furious” move to $20,000. And from there, Bitcoin will double in the next five months, reaching $40,000 in a jaw-dropping swing to the upside.

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