Since hitting a bottom of $6,400 in December, Bitcoin has surged by 46%, rallying as high as $9,425 just the other day. In the past week alone, the leading cryptocurrency has gained 15%, managing to outpace effectively all other assets trading right now.
Analysts say that this latest move higher is a precursor to a massive bull run, one that will bring BTC easily above $10,000 and potentially into the six-digit prices, some say.
Essential Bitcoin Bull Signal Flashes
Fundstrat Global Advisors, a New York-based markets research firm, recently noted that Bitcoin’s latest surge higher has allowed it to cross above the 200-day moving average.
The firm’s co-founder Tom Lee, who was previously an executive at JP Morgan, posted the below tweet in the wake of this occurrence, writing that this is a “positive milestone [that] reinfor[ces] 2020 shaping up to be a great year for BTC.”
He then noted that per his firm’s analysis, whenever the price of Bitcoin is about the 200-day moving average, the six-month forward win rate for the cryptocurrency “jumps to 80%,” “essentially [meaning BTC is] ‘re-entering’ a bull market.”
Bitcoin moved back above its 200-day moving average on 1/27… positive milestone and reinforcing 2020 shaping up to be great year for $BTC#bitcoin
The company has previously said that it expects for Bitcoin to end the year up 100%, implying a price of well above $15,000.
It isn’t only this that has Bitcoin bulls extremely optimistic about the prospects of the cryptocurrency heading into February and beyond.
In a tweet published on Tuesday after Bitcoin suddenly surged to $9,425 in a move straight out of the left field, prominent cryptocurrency trader Sawcruhteez, who called BTC’s surge to the $9,000s weeks ago, wrote that Bitcoin has formed a perfect cup and handle breakout.
The cup and handle, for some perspective, is a bullish chart pattern marked by two rounded bottoms at two different levels that most often sees assets strongly break higher from a local bottom.
#Bitcoin just confirmed a cup and handle with today's close. If it can reach it's target of $11,675 then it would be the first higher high on the weekly in seven months. 🚀 pic.twitter.com/wZSTgzSCCt
Per the analyst, this specific cup and handle pattern has a targeted move of around $11,675 — 25% higher than the current price of $9,350 — which should mark the first higher high on the weekly chart in seven months should Bitcoin reach that price level.