Technical Sign Hints Bitcoin (BTC) Could Surge to $17,000
Bitcoin (BTC) has managed to claw back some of its losses made in July. After trading below $10,000 for over a week, the cryptocurrency broke out, reclaiming the auspicious five-figure price point as outlined in this NewsBTC report.
Since then, the ball has been in the court of bulls, so to speak. As of the time of writing this, Bitcoin is trading at $10,500, having rallied by around 10% in the past week.
While BTC has yet to close above the key resistance levels of $10,600 and $11,000, the market could be ready to continue higher.
Bitcoin to See 60% Rally?
As spotted by prominent analyst Joe McCann, the one-day Bitcoin chart recently printed a strong signal. The Moving Average Convergence Divergence (MACD), an indicator that tracks trends, recently saw a bullish crossover, printing a green candle on the histogram.
There’s only one chart and one meme you need for #bitcoin today.
This one. pic.twitter.com/yVfvTlIqfD
— Joe McCann (@joemccann) August 2, 2019
As McCann points out in the chart above, the last two times that Bitcoin has seen this signal in this cycle was preceding two three-weeks surges to the upside of 52% and 61%.
Should history repeat itself, BTC could surge to around $17,000 by the end of August, riding on the back of bullish momentum.
What’s interesting is that this strong performance may set the stage for the rest of the year’s price action. Per previous reports from this outlet, cryptocurrency investor Timothy Peterson wrote that “historically, BTC returns in August have set the tone for the rest of the year.”
Technical Signs Predict Long-Term Rally
This hint that another short-term rally to the upside comes hot on the heels of reports stating that Bitcoin is now entering a potentially multi-year bull run.
On Bitstamp’s three-day BTC-to-USD chart, a “golden cross” just occurred. For those not versed in technical analysis, a so-called golden cross is when a short-term moving average moves above a long-term one, implying that bulls are in control of the price of a given asset.
The one that Bitcoin’s three-day chart recently saw was the cross of the 50 moving average above the 200 moving average. What’s notable about this is the last time this technical event played out was early-2016, February 2016.
What came after that is historic. This being the rally from $500 to $20,000 a jaw-dropping 4,000% move in under 24 months, of course. Should history repeat from here, Bitcoin could reach $400,000 by mid-2021.
Fundamentals Strong for Bitcoin
Not only are technicals strong, but so are fundamentals and news events. For instance, there is growing macroeconomic and geopolitical risk due to central bankers inflating the money supply, disputes between world powers, Brexit, and more. While Bitcoin is still viewed by most to be a “risk-on asset”, many analysts, including mainstream economists and investors, are starting to come to the conclusion that BTC is proving itself as a digital safe haven.
Also, there has been a dramatic increase in institutions involved in the industry, boding well for the future of cryptocurrencies.