On Friday morning, the Bitcoin market was subject to a bout of immense volatility, throwing off bulls. As reported by NewsBTC previously, the price of BTC surged to $8,820 to dump to $8,350 just minutes later.
Prominent trader Josh Rager took this as a sign that Bitcoin may be subject to a bearish reversal, one that may bring the cryptocurrency back to retest multi-month lows at $7,700, or maybe even lower.
Yet some analysts have still argued that the cryptocurrency market has held its upward momentum. In fact, one recently remarked that the leading digital asset may have the potential to top $12,000 by November — something that analysts last week would likely have thought near-impossible, or at least highly unlikely.
Here’s why they think Bitcoin can appreciate by nearly 50% by November.
Bitcoin Ready to Trend Higher
The analyst below recently noted that Bitcoin’s one-day chart has printed a strong technical signal that may be music to the ears of bulls — the Moving Average Convergence Divergence (MACD), a lagging trend-momentum indicator, has crossed into the green after a precipitous drop to oversold levels.
They claim that such crosses “always were followed by price rises [previously],” before adding that Bitcoin has the potential to reach $12,000 by November. (It is important to note that the analyst’s mention of that price point was not an explicit target, but rather a somewhat likely potential scenario due to the strong MACD.) A move to $12,000 from current levels would imply a 45% upside.
Sure, one indicator can’t be the nail in the coffin for bears. But, there is evidence to suggest that bullish crossovers on the daily MACD only greatly feed bulls.
Previously, Bitcoin rallied by 52% to 61% in the weeks after the daily MACD trended green in two cases earlier this year.
Bulls Gaining Momentum
Although $12,000 sure sounds lofty, there are a number of other technical indicators and chart patterns hinting that Bitcoin has bottomed and is poised to retake five figures.
Financial Survivalism noted that Bitcoin’s chart from the last week of September until now is eerily reminiscent of the textbook Wyckoff Accumulation pattern that technical analysis legend Richard Wyckoff identified in his studies. Survivalism argued that if “this current pullback (referencing the fall from $8,350 to $8,100) creates a higher low above $8,000, then I would consider [the Wyckoff Accumulation] confirmed”. Should this bullish pattern play out in full, Survivalism suggests that Bitcoin will return above $10,000 in around a week’s time.
Separately, an analyst has suggested that Bitcoin’s price action from late-September to now looks eerily like the bear market of 2018. Should BTC continue to follow historical precedence, it may retake $9,000, then $10,000 by next week.
And lastly, a custom interpretation of the network total value to transaction ratio (NVT ratio) has shown that Bitcoin is in a long-term buy zone, with the indicator implying that the cryptocurrency has bottomed.
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