Bitcoin Still Has Room To Run
Bitcoin (BTC) has finally broken out of an ascending triangle/symmetrical triangle pattern it has been stuck in for two weeks now. With this rally, BTC has tapped $8,900 and continues to hold $8,800 as of the time of writing this. As the buying and selling pressure has slowed, analysts have done their best to postulate what’s next for the cryptocurrency. And while some are calling for Bitcoin to “moon”, lacing their comments with hopium, some are adamant that this rally is out of hand, implying an impending correction to potentially pre-run levels.
A number of recent analyses have suggested that all things considered, Bitcoin still has room to run from here, despite its absolutely monumental performance in 2019 so far. The look to the fact that BTC closed its weekly candle above $8,400, the upper band of the aforementioned triangle patterns, suggesting that bulls are entirely in control. From here, analysts across the board are looking to $9,600 to $10,000, as there lie the next horizontal resistances for the cryptocurrency. Once BTC hits that region though, a pullback may just be inbound.
As legendary commodities trader Peter Brandt noted, Bitcoin is finally entering the “FOMO phase” of this ongoing parabolic advance, meaning it may soon come to screeching halt. Brandt, who earlier this year called for BTC to potentially establish new all-time highs over the long run, noted on Sunday night that his target for BTC is $9,321. Once it hits that level and once “sold-out crypto bulls capitulate”, he expects for a “more sizable correction” to occur, killing the current influx of FOMO and senseless hype.
He isn’t the first to have brought up the idea that once Bitcoin enters the $9,000s, a correction may start to come to fruition. Trader Walter Wyckoff notes that he expects for BTC to locally top out at $9,800, looking to the fact that in 2011 and in 2014, the asset hit its 0.382 Fibonacci retracement level and then scaled back. As you likely guessed, BTC’s current 0.382 Fibonacci level sits around $9,800. If historical trends are followed to an exact tee, BTC will tap the aforementioned level, then experience a 40% correction to $5,800.
Some are sure that the ball is in the bulls’ court though. The thing is, market dynamics are entirely different now than it was in cryptocurrency’s checkered history. As it stands, we have more eyes on the industry than ever before, and, more likely than not, more money sitting on the sidelines waiting for an entry point or a certain piece of news.
As content creator Marty Bent reminds us, when BTC last rocketed past $5,200 back in 2017, Cash App, TD Ameritrade, Fidelity, and E*Trade weren’t in the digital asset game in the slightest. Now, as I’m sure you know, they are. And they’re ready to rumble.
Title Image Courtesy of Andre Francois Mckenzie Via Unsplash