Since hitting $9,500 last week, Bitcoin has entered a consolidation pattern around $9,000. The cryptocurrency has traded between $8,700 and $9,200 for days, failing to decisively break out of this range.
Some say this is indicative of a market top. Yet others believe Bitcoin is poised to rally even higher, citing technical signals.
One analyst even said that considering a specific indicator, there’s a “good chance” BTC is fully bullish.
Bitcoin Could Be Fully Bullish: Top Analyst
Since the lows in March, Bitcoin has entered a very steep recovery. Just seven weeks after the worst cryptocurrency crash ever, and BTC is up well over 100%, recovering the bulk of the downturn.
It’s a stunning reversal that has left many wondering if it’s a relief rally or a reversal into a bull run.
This move could be the start of a full-blown bull trend, according to a top trader. Commenting to his Telegram channel in reference to the chart below, he wrote that “there is a good chance we are actually in full bull territory.”
Chart from @ByzGeneral (Twitter)
Although the name of the indicators used isn’t clear, the chart depicts two clearly positive signs for Bitcoin.
Bitcoin has moved out of a buy zone. This is a trend that was last seen in December 2019 and April 2019.
The bottom indicator recently saw a bullish crossover. The indicator last did this at the $7,000 bottom at the start of 2020.
As this crossover just took place, it shows that BTC has room to rally.
Adding to the positive technical confluence, a top trader says that the cryptocurrency has crossed above key levels:
The yearly volume-weighted average price.
The 200-day simple moving average.
And the one-day Ichimoku Cloud.
The Fundamentals Are Equally Bullish
Also bullish are Bitcoin’s fundamental trends, which a top firm says will boost the cryptocurrency in the year ahead.
In a research note on cryptocurrency published Thursday, David Grider said his firm is bullish on Bitcoin moving forward, specifically citing the halving as a positive catalyst:
“We’re bullish over the next 12 months and expect prices may continue moving up into the [halving] and possibly after.”
Grider is currently the lead digital strategist at Wall Street analysis firm Fundstrat Global Advisors.
Co-founder of Fundstrat Tom Lee echoed the optimism.
In a tweet, the analyst said that Bitcoin’s year-to-date performance proves that it is not only benefiting from the halving, but is also acting as a “solid risk-on asset and as a hedge against calamity”:
“Bitcoin has acted extremely well. YTD, it is outperforming equities by a sizable margin. So proving itself both as a solid risk-on asset (look at today) and as a hedge vs calamity.”
With governments printing trillions of dollars to boost the economy, it makes sense that a decentralized asset gains intrinsic value.
Photo by Roman Nguyen on Unsplash
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Author: Nick Chong