Bitfinex Debacle Aside, Bitcoin (BTC) May Shoot To $6,000 Due To Historical Trend
Analysts Keep Their Bullish Tone On Bitcoin
A number of analysts have become disconcerted as a result of the news that Bitfinex and Tether could be on thin ice, but some have aimed to stay level-headed, looking to technicals and trends to determine where Bitcoin (BTC) could head next. Per a recent analysis from Murad Mahmudov, the chief investment officer at up-and-coming cryptocurrency fund Adaptive Capital, BTC may be poised to move higher in the near future.
As he depicts on the above chart, Bitfinex’s current long-to-short position ratio, the Relative Strength Index (RSI) reading on the ratio, and the BitMEX funding and premium trends are looking bullish. Mahmudov looks to the fact that when the three aforementioned trends looked as they did historically, what followed was a rally in the Bitcoin price. These moves higher were inconsistent, with some of these cases only resulting in 5% gains, but historical precedent is set for BTC to move higher from here. The Adaptive Capital representative himself didn’t convey an explicit prediction, but he did draw an arrow to $6,400, a level which analysts believe will irk Bitcoin.
Further backing his call, Mahmudov noted that “the essence of investing & trading is the intelligent and patient preying on the greed, fear, impatience, addiction and ignorance of the majority.” The reason why is relevant is that the aforementioned stats indicate that the majority of traders believe that BTC is about to head lower.
Mahmudov isn’t the only analyst bullish as of the time of writing this. Per analysis from The Crypto Monk, a well-followed trader, the dust from the recent Tether and Bitfinex imbroglio have settled, and somehow, Bitcoin’s chart structure still is “looking good for bulls.” Monk didn’t give much reasoning for this point, but the chart attached to his message did depict that BTC has held above $4.800, a key level of support as it’s where the 200-day moving average is sitting.
Fundamentals are also looking overwhelmingly bullish for cryptocurrencies. As analyst Alex Kruger noted, both TD Ameritrade and E*Trade, two retail brokerage giants based in America, moving into the crypto market by offering spot trading would “likely be bigger than any Tether bearish developments.” For those who missed the memo, the commentator is referring to rumors that the two aforementioned identities will soon offer direct cryptocurrency trading to their millions of users. As Bloomberg and The New York Times’ Nathaniel Popper explain, a source familiar with the matter claims that just after TD Ameritrade began to test digital assets, E*Trade is preparing to launch support for Bitcoin and Ethereum, but is still waiting on a custodial third party.
Title Image Courtesy of Dmitry Moraine Via Unsplash