Analyst: Bottomed Bitcoin Will Rally To $8,000, Not Collapse To $3,000

Since Bitcoin (BTC) surmounted $5,000 last week, the cryptocurrency market has slowed, expressing signs of indecisiveness at every turn. However, technicians and chartists have begun to agree that a case for a further rally to the upside is growing, as bulls have yet to abate, and bears are losing grip on a market they controlled for over a year.

Related Reading: Crypto Market Surges Again: Bitcoin and Other Assets Having Another Green Day

Crypto Bulls Return En-Masse

For some reason or another, recent happenings in the crypto market have sparked an influx of buoyant sentiment. Maybe it was the fact that BTC easily surmounted its 200-day moving average (MA). Maybe it was the crossover in the 20-day and 200-day moving averages. Maybe it was the fact that the one-day Super Guppy, a technical measure used to indicate overarching trends, flipped green for the first time in 16 months you get the point.

Crypto Thies, a prominent analyst, looked to further this trend of cheery analysis on Tuesday, issuing a series of Twitter posts regarding why Bitcoin is poised for another leg higher.

The Seattle-based trader, who commands a following of over 26,300, claimed that the two-week Moving Average Convergence Divergence (MACD) measure has turned green, as the indicators signal lines have convincingly crossed over. The last time the Bitcoins two-week MACD looked as it does now, BTC was trading at $240 apiece, and the market was looking to recover from a large sell-off.

In a subsequent comment, Thies further explained why he is leaning bullish on BTC. Citing his proprietary Market God indicator, which has accurately called crypto bottoms and tops historically, Thies noted that it recently issued a buy for the first time since 2015, right near the bottom of the previous bear market. He added that the fact that the 30-day exponential moving average (EMA) and 90-day EMA had crossed for the first time since January is another bullish sign, as it accentuates that bears are seeing their hegemony evaporate.

With this in mind, coupled with a combo analysis of Keltner Channels and Bollinger Bands, Thies determined that a rally straight to $8,000 from where we are, without retesting lows is possible, barring that BTC holds above $4,800. He added that his year-end target for BTC is near $8,000, if the current uptrend and overall recovery stays its course. And interestingly, as reported by NewsBTC previously, textbook chart patterns and formations are signaling that Bitcoin will continue to head higher for the time being.

As trader B.Biddles opined, Bitcoins one-week chart from August to now impeccably resembles a bump-and-run reversal bottom (BARR Bottom) shown in a notable technical analysis book. If the BARR Bottom trend plays out as the textbooks author, Thomas Bulkowski, explains, BTC will soon see an uphill run that will catapult cryptocurrencies into their next bull run.

But Bitcoin Could See Sub-$3,000 If 2014-2015 Trend Repeats

Not so fast though. Trader Nunya Bizniz recently remarked that a golden cross (50-day MA and 200-day MA crossover) forming on Bitcoins one-day chart doesnt indicate that BTC is off thin ice just yet. As shown below, when BTC experienced a golden cross in 2014-2015s market cycle, it proceeded to crash spectacularly, falling 7% under its previous low, subsequently forming a death cross. If this specific trend was to repeat itself today, Nunya points out that Bitcoin would collapse to $2,900 by June, before finally embarking on a sustained rally.

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The post Analyst: Bottomed Bitcoin Will Rally To $8,000, Not Collapse To $3,000 appeared first on NewsBTC.

17.04.2019 / 05:50 74
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