Why Bitcoin Could Soon See Big Upside
Over the past few days, Bitcoin has found itself stalling in the low-$9,000s, seemingly trying to establish a level of support at around $9,200-$9,300. Right now, it seems to be working, with BTC rallying after the price heads into that range.
This consolidation, analysts suggest, is likely a precursor to even more gains in the coming weeks, which will force Bitcoin above $10,000 for the first time in months.
Key Bitcoin Buy Signal Flashes
On Sunday, prominent analyst Filb Filb — the trader who in October 2019 called Bitcoin’s surge to $10,000 and subsequent decline to the $6,000s — posted the below chart to his Telegram channel for crypto analysis.
He wrote that these charts paint a “pretty bullish outlook” because the “volume indicators are good,” not to mention the “moving averages are trending up.” He added that his monthly chart coupled with his proprietary indicator is printing a buy signal, “which in the past has meant a big upside move.”
He wrote in a previous analysis that he expects for the cryptocurrency to be trading well above $10,000 around the time of the halving:
“Overall, Bitcoin is exactly where [I] anticipated; slowly grinding up towards previous resistance… I’m very much of the opinion that Bitcoin will reach to at least $12,500 level before the halving.”
As to why $12,500 makes sense, he noted that that is the “top target” for a bullish inverse head and shoulders chart that is forming on a medium-term basis for Bitcoin.
Not Only Extremely Bullish Sign
While the aforementioned signal from Filb Filb’s indicator has yet to confirm, there is a confluence of other analyses that suggest Bitcoin is poised to see a strong rally into the coming months.
Fundstrat Global Advisors, a New York-based markets research firm, recently noted that Bitcoin’s latest surge higher has allowed it to cross above the 200-day moving average. Firm co-founder Tom Lee wrote that whenever the price of Bitcoin is about the 200-day moving average, the six-month forward win rate for the cryptocurrency “jumps to 80%,” “essentially [meaning BTC is] ‘re-entering’ a bull market.”
— Thomas Lee (@fundstrat) January 29, 2020
On the fundamental side of things, cryptocurrency content creator The Moon just noted that Bitcoin’s hash rate “just hit” a new all-time high at over 123 exahashes per second.This, he claims, is a clear sign that BTC is “screaming for a huge bull run leading into the halving,” referencing the sentiment that Bitcoin will surge into and after the block reward reduction event, which will result in a 50% decrease in the asset’s inflation.