Just as Ethereum World News wrote in a previous Bitcoin (BTC) market update, the price of the leading cryptocurrency has surged to the $9,000s once again, now trading at $9,050 as of the time of writing this article, having posted a 5% gain in the past 24 hours.
With this latest surge in the books, what is next for the cryptocurrency?
Bitcoin Poised to Continue Even Higher, Analysts Say
Despite the slight rejection at $9,150, analysts are certain that this latest surge proves a growing bull case for Bitcoin and its ilk.
Fractal Watch, a popular cryptocurrency analyst, noted that this latest breakout towards $9,000 has allowed BTC to break out of a falling wedge chart pattern. The measured move of this bullish chart formation is $9,500, the top of the infamous China pump seen in October/November of 2019.
Bitcoin falling wedge break out target. https://t.co/7PYV61njwb pic.twitter.com/Tyo9zMyqh2
— Fractalwatch (@Fractalwatch) January 27, 2020
This has been echoed by Raoul Pal — a former Goldman Sachs executive — who suggested in a tweet that BTC’s latest price move higher has allowed it to break out of a bullish “inverse head and shoulder formation.” He added that the formation should make for a powerful breakout.
These things aside, analysts have made it clear that the cryptocurrency will need to close the Monday candle above the 200-day simple moving average at around $8,950 to confirm a full-on bullish reversal, as rejections from this technical level are what signaled 2018’s bear market was not done yet during that part of the cycle.
Is There a Bearish Argument?
While many are seeing bullish skies ahead for Bitcoin, trader Crypt0mer recently pointed out that there may be a few bearish arguments for the digital asset market: BTC is currently trading in the midst of a very strong parabolic structure and the funding rates on BitMEX are extremely high, which is often a sign of reversals.
Bullz are trying to protect the parabolic structure despite high funding rates, and a very steep slope with aggressive buys. Let's see if we can breach previous resistance. $BTC pic.twitter.com/DthgZv3YfC
— CƦYP₮ΘɱΞƦ 🐻❄️ (@Crypt0mer) January 28, 2020
There’s also this cryptocurrency trader below, who noted that the four-hour chart structure in the low-$9,000s is extremely similar to Bitcoin’s price action near the $14,000 blow-off top seen in June of 2019. This would suggest that there may be one strong push higher prior to a drop that will bring the crypto asset to prices it was trading at prior to this latest surge higher.
Continuing with TD Sequential on a 4h TF, here is a similar situation at 14k.
A potential blow-off-top upcoming?$BTC $BTCUSD #bitcoin pic.twitter.com/RiAE49YUyH— CryptoHamster (@CryptoHamsterIO) January 28, 2020
Photo by Lukasz Szmigiel on Unsplash