Posted on

Bitcoin Bounces Off $10,000, BTC Could Rally Further: Analysts

Bitcoin Finds Support at $10,000… For Now

Bitcoin (BTC) has been absolutely slammed over the past five days. Since passing above $13,000 for the second time this year on Wednesday, the cryptocurrency has been on a clearly downward-sloping trend.

In fact, the asset has lost around 25% since hitting $13,200, reaching a multi-week low of $9,750 on Monday. And right now, the asset is trading for $10,250, with bulls managing to put up somewhat of a fight at the key level of $10,000.

As James Todaro, a prominent cryptocurrency investor points out, where BTC bounced is where the 50-day exponential moving average meets $10,000, making it an important swing level, and may continue to act as a strong level of support in this ongoing correction.

The last time BTC encountered was back in late-March, which was prior to Bitcoin’s strong rallies past $5,000, $8,000, and $10,000 in relatively rapid succession.

Should this level be lost, analysts suggest that BTC could correct hard, and may even return to the 200-day exponential moving average, which sits around $7,000.

In the short-term, however, bulls may get some reprieve. As analyst Crypto Tytan notes, when Bitcoin corrected last, it bounced off the 78.6 Fibonacci Retracement at around $9,800, and subsequently rallied all the way back to $13,000. So far, BTC has followed this trend, meaning that it may be in for a strong bounce, at least to the next key Fibonacci Retracement level of $10,700.

Also, Tytan points out that the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) on Bitcoin’s four-hour chart have begun to reverse, heading to the upside.

This bounce may not last though. Timothy Peterson, a prominent American crypto fund manager, notes that Bitcoin’s current active account figure suggests that BTC is fundamentally overvalued. This is an evident reference to the fact that Bitcoin, like other technological phenomenons, can be valued by its number of users, transactions, and other key statistics.

According to Peterson’s model, which takes a 30-day median (as of July 13th) of the number of active accounts on the Bitcoin blockchain, BTC currently has a fair valuation of just above $8,000.

(An aside, Bitcoin’s hash rate has recently moved above 78 million terahashes per second. This is an all-time high, meaning that not all of the blockchain’s statistics are signaling lower prices.)

Sure, Bitcoin has deviated from its fundamental value on certain trading days, but as the analyst explained in a different tweet, in the medium to long term, network value should reflect actual value.

Also, the fact that BTC closed its weekly candles under key resistance levels in the $11,000 range has led some traders, like Josh Rager, to suggest a move under $10,000, potentially to reach the $8,000 to $9,000 region.

Title Image Courtesy of Andre Francois Mckenzie Via Unsplash 

The post Bitcoin Bounces Off $10,000, BTC Could Rally Further: Analysts appeared first on Ethereum World News.

Posted on

Should History Repeat, Bitcoin Could See $20,000 By Year’s End

Bitcoin to See 100% Gain in Q3: What?

Since our previous report on the market, Bitcoin (BTC) has been able to see some short-term reprieve. As of the time of writing, the leading cryptocurrency is pretty much flat over the past 24 hours, posting no notable gains or losses to speak of.

Altcoins are actually outpacing Bitcoin today, with Ethereum, XRP, and most other large caps gaining 3% or so. With this, Bitcoin dominance has returned to 65% according to CoinMarketCap, which is only marginally lower than the 65.8% seen just yesterday.

Anyhow, what’s next for Bitcoin? According to Crypto (Parabolic) Thies, a certain turn of events could see surge to $20,000 by the end of the third quarter of this year.

The analyst at trade publication CryptoSlate notes that in January 2016, which is when BTC began to recover from 2015’s brutal downturn, Bitcoin saw a three-month KDJ cross after rallying by two to three times.

For those unaware, the KDJ is a “technical indicator used to analyze and predict changes in stock trends and price patterns”. It is purportedly also known as the “random index”, in that it seemingly moves without any rhyme or reason.

Anyhow, after the KDJ cross, BTC saw a flat neutral candle (meaning no large gains or losses), then a surge of over 100% in the quarter that followed. This is effectively what kicked off the previous bull run.

Thies notes that since the KDJ crossed on the three-month chart, he would be inclined to suggest that Bitcoin could see a similar turn of events play out if the following quarter ends relatively neutral. Such a “neutral” candle could likely be seen if BTC manages to end the third quarter (September) anywhere from $10,000 to $13,000.

Thies isn’t the only analyst that has pointed out that should historical trends hold true, Bitcoin could recover strongly into the end of 2019.

Timothy Peterson, a Texas-based crypto fund manager and Bitcoin pioneer, recently laid out a model which plots how BTC’s performance in the first half of any given year relates to the second half’s performance.

Interestingly, the model, which can be defined as the positive slope y = 1.1409x + 0.5151, fits the trend to 90%, implying that it should be fairly accurate.

According to Peterson, Bitcoin gaining 180% year-to-date (effectively the 2019’s first half) implies that it has another 250% (“give or take”) left to run by the end of the year.

A 250% gain from current levels would mean Bitcoin ends the year at $40,000 — practically double BTC’s 2017 all-time high of just around $20,000. According to Peterson, even $50,000 is realistic.

Title Image Courtesy of Pixabay.com

The post Should History Repeat, Bitcoin Could See $20,000 By Year’s End appeared first on Ethereum World News.

Posted on

Bitcoin Falls to $11,200: Why Analysts See Downside

What’s Next For Bitcoin?

Bitcoin (BTC) has continued to slip into Friday, falling to $11,200 as of the time of writing this. While the selling momentum has undoubtedly slowed, with bulls managing to push back bit by bit, many analysts are now short-term bearish, claiming that a move even further to the downside may just be imminent.

As Bravado’s lead analyst, Bitcoin Jack, points out, BTC topping at $14,000 late last month looks “awkwardly symmetrical” in structure to the 2017 top of $20,000 and the inverse chart of the bottom at $3,150 last December.

As seen below, this surely seems to be the case, with BTC’s price action matching up with key Fibonacci Retracement trends seen in the prior to extremes in the Bitcoin market. Just look at the charts below, which shows charts that look very similar, even from a quick glance. Jack notes that if the entire trend is to play out, meaning that if Bitcoin now acts as it did when it peaked at $20,000, it could fall even further, potentially to hit the $9,800 region for the second time.

This is what’s known as a fractal. And considering that the cryptocurrency space has historically been rife with these patterns, the case for a further move to the downside is surely growing.

That’s not all though. Philip Swift, an analyst that also goes by “Positive Crypto”, notes that over the past few weeks, BTC has been struggling to surpass twice its 350-day moving average, with bulls failing to claim that key level. Thus, he notes that a move to return to the $7,000s to $8,000s could be had, adding that he is bearish on a short-term time frame.

Is There Hope at All?

There is some hope, however.

With this move to touch $11,200 after a move above $13,000, twice, Bitcoin has decisively broken its parabola, which has held for over six months. Parabolas, especially in the cryptocurrency market, often result in corrections of upwards of 80%. But as analyst Nunya Bizniz points out, there’s a chance that BTC could find some much-needed support on the bottom bound of an upward-sloping parallel channel line, which has been merged with the previous parabolic trend line (seen in yellow).

If BTC was to fall to said trend line now, it would find a local bottom of around $11,000.

This lines up with another theory. As reported by Ethereum World News previously, Jacob Canfield noted that Bitcoin’s price action over the past month eerily resembles a corrective contracting triangle, which could either signal the end of a trend or a sign of impending continuation. Canfield shows that if Bitcoin follows this trend as it is shown in textbooks, BTC will fall to the low-$10,000s, rebound, fall once again, and break out to either the upside or downside.

Photo by Joshua Newton on Unsplash

The post Bitcoin Falls to $11,200: Why Analysts See Downside appeared first on Ethereum World News.

Posted on

Altcoins Bleed as Bitcoin (BTC) Surges to $12,300, Why?

Bitcoin Rallies to $12,400

Bitcoin bulls are back. HODLers rejoice. Over the past 24 hours, BTC has gained over 7% according to CoinMarketCap, marking the first large daily gain in a while.

With this strong swing to the upside, Bitcoin has found itself nestled between two key levels — $12,000 and $12,400, which may act as support and resistance, respectively, for the time being.

While this breakout is evidently a positive sign, especially considering the $4,000 decline seen around two weeks ago, one analyst believes that Bitcoin isn’t home free just yet. Prominent trader Mac notes that BTC has just a smidgen higher to head before “bears get f**ked”, not sugar coating his sentiment one bit. As you can see in the charts below, $9,970 acted as a key level, which the analyst calls a “liquidity meme”.

When Bitcoin broke past $9,970 last month, BTC skyrocketed higher, hitting $10,800 just an hour or two later. Mac points out that $12,465 shares a similar level of importance, meaning that any short-term close above that level will catalyze a surge, potentially to revisit year-to-date highs at $13,800. Such a move would be around a 10% gain from current levels.

Altcoins Shed as BTC Looks to Take on New Highs

As a result of this renewed momentum in the cryptocurrency market, altcoins have begun to slip yet again, reacting relatively negatively to BTC’s 7% gain.

Ethereum, for instance, has gained a relatively measly 2.5% in the past 24 hours. This comes in spite the fact that the project has seen an onslaught of positive developments over the past week: Serenity code specification freeze, Binance confirming it will be converting its Tether from Omni (Bitcoin) tokens to ERC-20 tokens, a large issuance reduction (positive for supply-demand economics of Ethereum’s market), and possible futures from the CME.

Per data from Messari’s OnChainFX, Bitcoin dominance, the percentage of the cryptocurrency market’s value that consists of BTC, has hit 67% (two-thirds). This figure is up around 1% in the past 24 hours, which is notable when you consider the fact that the value of all digital assets amounts to over $300 billion.

To give this figure some perspective, when altcoins were surging in early-2018 on the back of retail FOMO for Ethereum and XRP, Bitcoin dominance was somewhere around 35%, nearly half of what it is now. So, why exactly are altcoins hurting?

Well, this subset’s underperformance is most likely a byproduct of simple market cycles. Chris Burniske, a partner at venture fund Placeholder, suggested in a Twitter thread that when BTC rallies strongly, a “majority of ‘alts’ fall against Bitcoin.” Burniske attributes this to the fact that Bitcoin is the main liquidity provider in the space, thus making it illogical to sell much of the time.

Photo by Terry Vlisidis on Unsplash

The post Altcoins Bleed as Bitcoin (BTC) Surges to $12,300, Why? appeared first on Ethereum World News.

Posted on

Bitcoin (BTC), Gold, Safe Havens Continue to Skyrocket in Tandem, Why?

Bitcoin & Gold in Lockstep

Over the past few months, the Bitcoin (BTC) price trend has been eerily similar to that of gold. While some have cast aside this correlation as a pure coincidence, citing the fact that they see the two assets as polar opposites, many suggest that the correlation is fundamentally-backed.

According to eToro’s Mati Greenspan, the reason why Bitcoin has been rallying alongside its physical counterpart is due to the liquidity that central banks have begun to pump into the global economy.

As the popular crypto-friendly analyst explained on Twitter, this is a result of capital from stocks flooding into alternative assets, due to a search for stores of value and ways to mitigate against a U.S. dollar devaluation, which is already starting to occur against some foreign currencies (Canadian Dollar, Japanese Yen, for instance).

This would seemingly be the case. As Max Keiser of RT explained in a recent television segment, the BTC bottom at $3,150 was put in when the Federal Reserve announced it was going to be dovish, meaning it is actively looking to instate the next round of quantitative easing.

More importantly, the search for safe havens was recently made even more important with a tweet from Donald Trump.

Seen below, the businessman-turned-leader accused China and the European Union of manipulating their currencies, and “pumping money into their [economic] system in order to compete with the USA.”

What the American leader is presumably referring to is the skewed balance sheet of Europe and the rumors that China’s (anti-crypto) central bank is toying with the forex market to improve the optics of its current account.

To counter this supposed manipulation, Trump urged the Federal Reserve to “MATCH” the fiscal policy of the aforementioned regions’ respective central banks.

As markets analyst Alex Kruger explains, this will result in lower interest rates, a cheap dollar — foreign currencies have already begun to move against the U.S. Dollar; and soaring stock markets, which will be pushed higher by greater exports and investors rushing to escape an inflating currency.

So, why exactly is this bullish for Bitcoin and gold?

Well, as Travis Kling, the libertarian chief of crypto fund Ikigai, has hinted at, with a low-interest rate environment, hyperinflation, a sovereign debt default, and other horrible economic events become that much more likely. As Kling likes to quip, “[this is] brazenly bullish for a non-sovereign, hardcapped supply, global, immutable, decentralized digital store of value.” By this, the former Wall Street fund manager obviously means Bitcoin, but gold kinda fits the bill too.

All this comes as BTC has begun to gain traction as a viable store of value in today’s economy. As reported by Ethereum World News previously, two mainstream media contributors, Jim Iuorio of CNBC and Tyler Cowen of Bloomberg, have both lauded the leading cryptocurrency as a way to hedge against fiscal/economic uncertainty.

Photo by Dmitry Moraine on Unsplash

The post Bitcoin (BTC), Gold, Safe Havens Continue to Skyrocket in Tandem, Why? appeared first on Ethereum World News.

Posted on

Despite Tether & Serenity News, Ethereum (ETH) Analysts Still Wary

Ethereum Sees Two Key Developments

All eyes may be focused on Bitcoin right now, but Ethereum (ETH) has seen a number of strong positive developments over recent days and weeks. Just the other day, Binance, one of the world’s largest exchanges, revealed that it would be changing its Tether (USDT) stockpile from Omni (Bitcoin-based system) to the Ethereum blockchain. (For those unaware, USDT exists on four chains simultaneously, these being Omni, Ethereum, Tron, and EOS.)

Binance’s Changpeng “CZ” Zhao told users of his platform last month that as soon as Binance’s ETH-USDT stash outweighed its Omni-USDT stash, it would convert over to the former.

this shows that investors are starting to prefer the faster Ethereum system over Omni, which some say isn’t suited for stablecoin use. And considering that Binance and its customers are some of the largest USDT holders out there, other exchanges and service providers may soon follow suit.

The introduction of an Ethereum-based USDT onto Binance is likely to increase the blockchain’s transactional volume, which is evidently good for those valuing ETH by its fundamentals.

Also, as reported by this outlet previously, the specifications of Phase Zero of Serenity, dubbed “Beacon Chain”, were recently ‘frozen’. This means that much of the upgrade’s changes have been somewhat finalized. Per trade publication CryptoSlate, however, there are still a number of “significant” changes slated to be made to the specifications. 

For those unaware, founder of the blockchain Vitailik Buterin claims that Serenity could simply be explained as “a way to bring technical improvements, like PoS and sharding, together to improve the Virtual Machine, Merkle Trees, the efficiency of the protocol, and a whole bunch of small technical things that you have never heard of.” Per the industry insider, this is all being done in a bid to create a “next-generation blockchain” to be hundreds of times faster and scalable than Ethereum’s current iteration.

Not All Fine And Dandy

Not everything is fine and dandy though. The Next Web’s “Hard Fork” column recently revealed that Ethereum’s user count growth is being eclipsed by both EOS and Tron. Data from Dapp.com, a crypto analytics service, suggests that that Ether has around 20% less active users than Tron, but around 20% more than EOS. Also harrowing is the fact that Ethereum application saw a mere 6.04 million transactions in Q2 2019, which is a far cry from the 189.79 million registered by EOS applications.

This isn’t the only worrying sign. As technical analyst Squeezy points out, Ethereum is “on the verge of jumping off a cliff with a descending triangle”, drawing attention to a series of lower highs and failed breakouts on the asset’s chart (seen below).

And as Three Arrow Capital’s Su Zhu adds, this is a result of a discoupling between the correlation of Bitcoin and Ethereum, marked by the 30-day BTC-to-ETH/BTC correlation reaching -73%. Ouch.

Title Image Courtesy of Pixabay.com 

The post Despite Tether & Serenity News, Ethereum (ETH) Analysts Still Wary appeared first on Ethereum World News.

Posted on

Tom Lee: Bitcoin (BTC) Could See ‘Fireworks’, $50,000 Closer Than You Think

Bitcoin Recovers to $12,000, Lee Expects Further Gains

It’s July 4th. You know what that means — fireworks, fireworks for Bitcoin (BTC) that is. According to a recent tweet from Thomas Lee of Fundstrat Global Advisors, the leading cryptocurrency may soon “see fireworks”, which, in the context of his Twitter timeline, suggests a strong move higher in the near future.

Case in point, in the tweet, Lee explained that since crossing above $10,000, the cryptocurrency market has been graced with “Level 10 FOMO”, which is a level of positive sentiment only seen during 3% of the asset’s history.

To be fair, Bitcoin has already beat the expectations of most analysts. As covered by this outlet last week, most analysts were projecting a strong downturn, but BTC is now sitting snug at $11,750 — up around 20% from the local bottom of $9,700.

You see, when BTC slipped from $13,800, its chart registered a series of signals deemed “bearish”. As reported by Ethereum World News previously, analyst Nunya Bizniz pointed out an interesting fractal (a previous bout of price action that plays out at different times) on Bitcoin’s one-day chart. He noted that 2018’s crash and 2019’s strong recovery is looking a lot like the price action seen in 2011 and 2012, which was the crypto market’s first full-fledged cycle.

During this period, Bitcoin rallied to new heights, fell by 94%, saw a rapid bounce by 260%, to then fall by 46%. Bizniz notes that if history is of any indication, Bitcoin could see a 46% decline, which would bring it back to the $7,000 range.

More importantly though, Bizniz noted in a later tweet that Bitcoin recently broke under a parabola that it has held for upwards of six months. This is notable, as the origin of this move stretches back to Bitcoin’s bottom of $3,150. For those unaware, each time BTC failed to hold a medium- to a long-term parabola, an 80% correction ensued.

So, now that a strong reversal is off the table, where exactly does Lee expect for Bitcoin to head?

While he didn’t make any explicit predictions in the aforementioned tweet, we can look to his previous comments to get some insight. Speaking to Wei Zhou of Binance, the prominent analyst noted that once $10,000 is breached, all proverbial hell will break loose in the cryptocurrency market. Lee, accentuating his optimism, went on to say that $20,000 and $40,000 should fall shortly after the achievement of $10,000.

Lee still seems to be closely eyeing $40,000, as, replying to a commenter, the Fundstrat analyst quipped that $50,000 may be crossed “sooner than most think… “

While some have suggested that much of the hypothesized buying pressure will come from retail investors, more and more data suggests that institutions will be the ones driving the rally. Speaking to Bloomberg earlier this week, Michael “Novo” Novogratz of Galaxy Digital claimed that pensions and endowments will be the ones driving Bitcoin past $20,000.

Title Image Courtesy of Unsplash

The post Tom Lee: Bitcoin (BTC) Could See ‘Fireworks’, $50,000 Closer Than You Think appeared first on Ethereum World News.

Posted on

CME Bitcoin Market Has Record Month, Could Boost BTC High

CME’s Crypto Market Sees Massive June

According to a recent report from CoinDesk, Bitcoin futures on the CME — one of the world’s leading derivatives market — saw a stellar June. The Chicago-based platform’s BTC-related vehicles were traded by over 2,960 accounts, most of which are purported to be hedge funds, large investors, institutional players, and cryptocurrency funds/miners.

This massive number of investors utilizing the CME’s Bitcoin amenities — the highest to-date — coincided with a 30% surge in account sign-ups, clearly accentuating that the asset’s recovery to $10,000 is driving investors back into BTC. Year-to-date, the CME has registered 1,000 new accounts to trade Bitcoin futures.

Also, the amount of open interest in the CME’s Bitcoin futures hit 6,069 contracts, amounting to over 30,000 BTC. And the number of clients holding over 5 contracts moved from 46 to 49 over June, implying that bigger investors are starting to trickle back into the cryptocurrency ecosystem.

Bitcoin Could Surge Off Renewed Institutional Interest

While it isn’t clear how futures trading has affected the value of Bitcoin, Mike Novogratz has suggested that renewed institutional interest will be a primary catalyst for BTC to head higher, potentially to $20,000 and beyond.

As reported by Ethereum World News, the former Wall Street hedge fund manager on Tuesday explained what he thinks will be a massive boon for Bitcoin in the years to come. This is, of course, institutional involvement. Novogratz told Bloomberg:

“I’m not selling the next time we hit $14,000. The second time we reach that level, [there may be] a move to $20,000. I don’t expect this to happen in the next few weeks: I don’t expect it to the middle or the end of the fourth quarter. But the next wave will come when the institutions — the state of X, Texas Teachers Union, and those guys — come in, and then you will see Bitcoin hit $20,000 and higher.”

The aforementioned CME data suggests that institutions are already well on their way back into this space. What’s more, upstart cryptocurrency exchanges backed by Wall Street giants, namely ErisX, LedgerX, and the New York Stock Exchange’s Bakkt, have secured the proper licenses from American financial regulators to soon list Bitcoin-backed vehicles.

Also, TD Ameritrade and supposedly E*Trade, two leading brokers in the U.S., are soon expected to launch spot cryptocurrency trading, which many say will give retail and institutional investors alike a regulated, trusted way to siphon money into Bitcoin. As Novogratz explained:

“You can buy bitcoin on your TD Ameritrade trading account. That’s a big deal because the general population has not signed up and got a Coinbase or Circle wallet yet. We are going to see in the next three to eighteen months more ways to buy bitcoin.”

Whether or not this translates into positive price action isn’t clear just yet. But one thing is for certain: big corporations are eyeing Bitcoin, and seem poised to want to capture demand from a retail audience.

Photo by Brad Knight on Unsplash

The post CME Bitcoin Market Has Record Month, Could Boost BTC High appeared first on Ethereum World News.

Posted on

ICO Craze Still On: Telegram’s Gram Crypto Will Sell For 3x Original Price

Telegram’s In-House Crypto to be Sold on Liquid

As Bitcoin (BTC) and the broader crypto asset market has recovered over the first half of 2019, it seems as though initial coin offerings (ICO) have made somewhat of a resurgence.

According to a recent report from Bloomberg, Gram Asia, a large holder — “whale” — of Telegram’s soon-to-launch cryptocurrency (Gram/GRAM), is looking to liquidate his/her/their stash in a sale starting on July 10th.

To be held via Liquid, a Japanese crypto exchange which many laud for its transparency and above-the-board nature, the sale will see Gram Asia, a South Korea-based entity, sell Grams for $4 apiece.

This is over three times the price purportedly paid by investors of Telegram’s private placement round, accentuating that there is still hype for ICOs in spite of the unraveling of many cryptocurrencies. Grams sold on Liquid will be lowered to $3.50 a coin if buyers use the crypto exchange’s in-house token, QASH.

The tokens purchased won’t be released until Q3 of this year, which is when Telegram, a popular Bitcoin-friendly messaging ecosystem with roots in Russia, is expected to launch its “Open Network”.

It is important to note that this is not a Telegram-endorsed sale, but is instead Gram Asia’s attempt to capitalize on the anticipation of the launch of the social media cryptocurrency.

This sale, which some suggest may be well oversubscribed, comes shortly after Algorand, what analysts dub a “next generation” blockchain, held an absolutely crazy sale. During the event, the Proof of Stake protocol snagged just over $60 million via CoinList. With Algorand expecting to issue over 10 billion Algos in the coming five years, the recent sale valued the network at over $20 billion — crazy.

A Libra Competitor?

For those who haven’t been following news of Telegram’s official sortie into the cryptocurrency ecosystem, the Telegram Open Network is expected to facilitate an array of applications: user-built applications, decentralized data storage, and ways to bypass censorship (implying a decentralized messaging service). Pavel Durov, the chief executive of Telegram, hopes that the blockchain will be faster than Bitcoin and Ethereum, thus giving it the capability to compete with financial incumbents, namely Visa and Mastercard.

Considering the timing of the launch of the chain, the expected use cases, and the fact that Telegram is a social media firm, some have dubbed Gram a competitor to Libra. This may not be how Durov or Zuckerberg planned it, but the two chains are likely going to clash.

Photo by Christian Wiediger on Unsplash

The post ICO Craze Still On: Telegram’s Gram Crypto Will Sell For 3x Original Price appeared first on Ethereum World News.

Posted on

Analysts: Bitcoin (BTC) Chart Bullish (Again) After Recovery to $11,000

Bitcoin Now Bullish After Recovery Activates

After entering the $9,700 region just the other day, Bitcoin (BTC) has bounced back. Hard. As of the time of writing this article, the leading cryptocurrency sits at $11,000 — up nearly 7% in the past 24 hours as BTC registers a strong bounce after a 30% selloff that took place over a matter of days. While this bounce is to be expected, is the Bitcoin price chart bullish once again, just like it was earlier this month?

According to a number of prominent analysts, yes. Per a recent tweet from B-Eazy, a known trader, the 30-minute chart has seen BTC break out of a declining trend line, double bottom, break clear of a cloud resistance, and push past the daily open — all bullish technical signs. He notes that Bitcoin now has a “bullish market structure” once again, and that whats next for BTC is for it to close strong above the weekly open in the highs $10,000s.

This isn’t the only sign that Bitcoin is bullish once again. As Level’s Josh Rager pointed out earlier Tuesday, a sign that buyers are stepping in to reclaim the cryptocurrency market after letting BTC slip by 30%, is a close above $10,572 on the four-hour chart. This has been achieved.

But even more importantly, Bitcoin managed to close the daily candle, which gives more of an indication as to where this market will head next, extremely strong. Per Joe McCann, a prominent technical analyst and investor, Tuesday’s close was strong due to loads of volume, Bitcoin finding itself above the 20-day moving average, and the existence of a “big hammer candle [that was] posted after many shorts closed their positions below $10,000”.

So, with this in mind, what do analysts expect is next? Interestingly, most expect consolidation, not a strong continuation to the upside. As Alex Kruger notes, his outlook on Bitcoin remains unchanged: “expect consolidation/ranging before the next large upwards move.”

There seems to be technical reasons for the expectation for Bitcoin to flatline, or maybe even fall back lower from here. As reported by this outlet previously, analyst Teddy Cleps points out that Bitcoin recently managed to bounce off the key 200-day exponential moving average. But, historically, as seen in the chart published below, BTC made contact with this key trend line multiple times to confirm support, then rallied after double or triple bottoming. The reason why this is, according to Teddy: consolidation allows for moving averages to coalesce; and the Moving Average Convergence Divergence (MACD) can flatten out for the next move.

Whether or not this historical trend holds its water this time around remains to be seen though. Anyhow, most bets seem to be on at least a few days or weeks of consolidation prior to a swing to the upside, a swing that may bring Bitcoin past $20,000 for the first time in its history.

Photo by Rodion Kutsaev on Unsplash

The post Analysts: Bitcoin (BTC) Chart Bullish (Again) After Recovery to $11,000 appeared first on Ethereum World News.