- Bitcoin (BTC) adds 6.1 percent
- Ahead of next year’s halving, BTC is likely to inch higher
Tone Vays, a Bitcoin supporter and a former Financial Analyst at JP Morgan, is edgy of the current uptrend. BTC is ranging, and prices aren’t steady above $8,000. That’s what’s visible in the daily chart. Therefore, unless otherwise there is a break above $8,500 and later $9,100, BTC may topple below $7,500.
Bitcoin Price Analysis
Thus far, it has been a perfect start for cryptocurrency investors. Recording double-digit gains over the last two quarters, Bitcoin is a standout. Even so, that is not deterring bears from hitting back and capping progress.
In the last three or so weeks, it is evident that prices are ranging inside a $1,000 zone. That’s a classic accumulation as this is printing in a clear bullish trend. However, since halving is next year, coinciding with a significant political event in the US, BTC investors are optimistic.
Already, the expectation of a favorable price repricing is prodding demand in Litecoin. Rallying above $130 at the time of writing, Litecoin, a protégé of Bitcoin designed purposefully to complement the network, is up five-fold after hitting rock bottom in mid-Dec 2018.
Behind this euphoric rally is August’s halving. If Litecoin, therefore, becomes a blueprint, odds are-and this happened before, BTC could surge to near highs.
Arthur Hayes, the CEO, and founder of BitMex said he his confident prices would surge to $50,000 by the close of the year. Ahead of BTC halving, the same may happen as many analysts concur on this possibility.
While there is no reason to trust bulls as Tone Vays warns, BTC bulls have the upper hand. If anything, $8,000 is a psychological price tag and a vital level for traders. As a reminder, it is crucial for bulls to not only build the momentum required for thrusting prices above $8,500 and $9,000. Notwithstanding, priming this upsurge must be high participation.
That will be a litmus test gauging the strength of buyers, a prerequisite for a trend continuation. As it is, there is an opportunity for aggressive traders to buy the dips as long as BTC is above $7,500.
However, that will largely depend on the confirmation of the three-bar bull reversal pattern of June 4th through 10th. Ideally, the perfect entry is above $9,100. Such a break above May high would trigger the much-needed wave that could push BTC to above $10,000 and $12,000.
Trading volumes are shrinking despite the expectations of better prices. For trend continuation, trading volumes that would thrust prices above May high must usurp those of May 30th of 31k or even 47k of May 14th. Similarly, any liquidation below $7,500 must be with equally high trading volumes nullifying this trade plan.
Chart courtesy of Trading View. Image Courtesy of Shutterstock