Bitcoin has seen some crazy price action over the past week. After nursing an 8% drop for a few days, Bitcoin began to start heading higher three days ago, eventually making to a point where the cryptocurrency exploded higher, seemingly on the back of the activation of tariffs on China. Then, the price action continued, with BTC bounding to $10,700 in a secondary surge sparked by the launch of a “Limited ETF” from VanEck.
Price action was tumultuous even today, with BTC falling to $10,400 before surging to nearly $10,900 to fall back to $10,500 as of the time of writing this.
According to analyst Nebraskan Gooner, Bitcoin’s one-hour chart is currently looking week, haven’t been rejected from an uptrend at $10,800. He writes that while he isn’t overly bearish, he is currently expecting a drop to the $10,300 range.
Long-Term Uptrend Intact
While Bitcoin’s short-term trend may be in jeopardy, the long-term trajectory still seems to be entirely bullish.
Prominent Twitter analyst PlanB recently pointed out that Bitcoin’s one-month relative strength index (RSI) reading continues to look poised to surge higher. As he depicts in the chart below, Bitcoin’s RSI over the past five months looks much like it did during the 2016 phase of the last bull run, during which Bitcoin consolidated for a few months, resting in a range, before skyrocketing higher.
History repeating would see Bitcoin start to resume its upward momentum this month, then start to show more bouts of parabolic price action come the end of 2019.
The fundamentals are seemingly supportive of this trend.
Argentina has just instituted capital controls on its citizens to halt a slump in foreign-currency reserves”, which analysts say will spark Bitcoin demand.
And speaking with Bloomberg last week, Mike Novogratz of Galaxy Digital said that institutions are finally starting to enter into the cryptocurrency game, and will thus drive up the price of Bitcoin.
Like many others in the industry, he believes that this class of investors will bring in monumental levels of capital to this space, outpacing any retail investors that came before them. In previous interviews, the former Goldman Sachs partner explained that institutions are likely to bring Bitcoin to $20,000, potentially by year’s end.