Bitcoin (BTC) has been on an absolute tear as of late. After wallowing under $8,000 a few weeks back, the cryptocurrency has embarked on yet another rally, quickly moving past $9,000, to $10,800, where it stands as of the time of writing this. With this, BTC is up over 20% within a week’s time, marking one of the best weekly performances seen this year.
While BTC has shown signs of temporary weakness, as made evident by rejection at the $11,200 mark and a rapid sell-off to $10,300, some suggest that in the coming days, Bitcoin may continue higher. Let’s take a closer look at what analysts are saying.
What’s Next For Bitcoin
Although analysts in financial circles, especially cryptocurrency, often have different thoughts on what will happen, a number of commentators have recently converged on one scenario that they believe is most likely to happen. This scenario, as first explained by well-followed analyst Bagsy, can be seen below.
He and his peers believe that Bitcoin will rally to hit $11,500, a key resistance; fall to $8,300 to retest support and establish a strong base; and then surge past $11,500 to hit $13,800, the next level of importance. This series of events could, according to Bagsy’s model, end in September to October.
As explained, Bagsy isn’t the only one with these thoughts on Bitcoin’s future price action. In a similar tweet, RedXBT, also known as “green”, explained that he truly believes the aforementioned price action could play out.
Backing his semi-prediction, he explained that if you took price action from June 2018 to December 2018, flipped it, and then applied it onto the current BTC price action (this is what’s known as a fractal), you would have a test of $11,500, rejection to $8,250, and then surge to $14,000 and beyond — almost exactly like Bagsy explained.
Faster, Harder Rally?
Interestingly, however, many are sure that such an extended period of consolidation won’t take place though. Some are sure that now $10,000 is breached, new highs are in store. More specifically, Tom Lee, the head of research of Fundstrat Global Advisors, has suggested that a move to five digits will catalyze an influx of “Level 10 FOMO”. As he put it on Twitter, “[$10,000] will see FOMO from those who gloated about the 90% crash in BTC… and those who saw Bitcoin dead as forever.”
So, how will this FOMO materialize in prices?
Well, as Lee explained in a recent podcast with Wei Zhou, the chief financial officer of crypto giant Binance, once $10,000 is breached, all hell will break loose for the cryptocurrency market. This means that there will be a “fast and furious” move to $20,000. And from there, Bitcoin will double in the next five months, reaching $40,000 in a jaw-dropping swing to the upside.
Title Image Courtesy of Pixabay.com
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