After sustaining a nearly 4% loss over the past two days, Bitcoin started to recover on Friday, rallying as high as $10,380 just minutes ago as of the time of writing this.
While this isn’t a strong recovery per se, for the asset remains below its local top of $10,550 (which analysts say is crucial for bulls to break across in the coming days), an eerie pattern suggests Bitcoin is going to rocket higher towards $10,600.
Bitcoin Could Soon Surge Higher
Prominent cryptocurrency trader HornHairs recently noted that Bitcoin’s price action has exhibited a clear pattern over the past few days: the pattern sees BTC dump, pump in a parabolic fashion, and crash again as the parabola fails.
Bitcoin is currently in the middle stage, marked by rapidly-increasing prices. The parabola that is forming suggests the price of the cryptocurrency will top around $10,650, around 3.4% higher than the current price of the asset.
Nik Yaremchuk, an analyst and researcher at cryptocurrency fund Adaptive Capital, recently noted that with Wednesday’s close, the one-day and two-day Bitcoin charts are printing simultaneous sell signals: the TD Sequential has printed a green 9s on both time frames.
This is more bearish than bullish because, for those unaware, the time-based TD Sequential prints 9 and 13 candles at reversal points in markets, for it signals that the trend is exhausted.
Close Above $10,500 Could Set Stage for Bigger Move
While the above pattern suggests Bitcoin may crash after it sees a short-term parabolic spike into the $10,600 to $10,700, a daily or weekly close above $10,500, analysts say, will set the stage for an even larger move higher.
Prominent technical analyst Cred — who sports over 140,000 followers — remarked that since $9,500 has been breached, Bitcoin’s nearest resistance is $10,500, the midpoint of the tried-and-true range between $9,500 and $11,500.
So far, the cryptocurrency has rejected that level.
Though, Cred remarked that if Bitcoin can confirm a close above $10,600 — just a smidgen above the resistance he identified — prices will continue higher, likely unfettered until the other long-term resistance he identified at $11,500.
$10,500 is also important because this price point was the top of Bitcoin’s rally in September 2019, which was caused by China’s embracing of blockchain technologies in an unexpected fashion.