Why Bitcoin (BTC) Price Is Poised to Surge Into $8,000s
Bitcoin (BTC) bulls seem to be having quite the streak. For the third or fourth day in a row, the leading cryptocurrency has posted gains. As of the time of writing this, Bitcoin has broken to highs it hasn’t seen in two weeks, rallying as high as $7,580 just hours ago.
While the momentum isn’t as strong as some analysts would like, more and more traders and starting to say that this price action confirms their ideas that BTC is ready to gain strength into the start of this week.
Bitcoin Ready to Boom Higher
Josh Olszewicz, an analyst at Brave New Coin, recently noted that an inverse head and shoulders chart pattern — a bullish pattern that is likely to mark a strong bottom for BTC — is playing out for Bitcoin.
He remarked in a TradingView post outlining his trading idea that should BTC hit $7,525 (and it has already, implying that the trading idea is live), a move to the $8,100 to $8,700 range — an 8% and 16% rally, respectively — is likely to play out. As to why the rally will stop there, he cited a confluence of a few key resistances: the 200-day exponential moving average, the daily Ichimoku Cloud, a yearly pivot point, and the weekly 20 moving average.
But that’s far from the end of the optimism.
Cryptocurrency and forex trader Livercoin posted the below tweet on Saturday, showing that he believes Bitcoin has been trading like a textbook Wyckoff Reaccumulation-esque pattern over the past few days.
The textbook pattern, should BTC follow it to a T, suggests that BTC will break higher and higher in the coming days, in an upward move that will bring the asset back to the high-$7,000s.
The fundamentals are also bullish. Per previous reports from Ethereum World News, Blockchain.com, a cryptocurrency information and wallet service, found that Bitcoin’s hash rate hit a new all-time high on the 1st day of 2020. The all-time high, 119 exahashes per second, or 119 with 18 zeroes after it.
This surge in the hash rate breaks the previous all-time high set more than two months ago in October, meaning that Bitcoin’s network is now stronger than ever before, marking an amazing start to 2020.
Indeed, as further pointed out by cryptocurrency trader The Moon, BTC’s hash rate is eight times higher than it was back during the $20,000 top of 2017, implying to him that the price of the leading cryptocurrency is “about to explode SOON!”