Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
There is a 75 percent possibility that Bitcoin breaks bullish out of its ongoing consolidation pattern.
According to independent analyst Vince Prince, the benchmark cryptocurrency is making âmarginalâ upside movements in an Ascending Channel structure.
That has left it with two possible outcomes. First, Bitcoin consolidates inside the Channel while breaking below the âAscending Trendlineâ; Second, it stays above the Trendline and later breaks out of the range altogether.
Mr. Prince favored the second outcome. He denoted each of the cryptocurrencyâs price reversal points with an alphabet. Therefore, the term âAâ represents the first pullback from the Ascending Channel resistance. The next rebound from the Channel Support is âB,â while the third and the latest upside withdrawal comes from âC.â
Amid the so-called ABC-wave, he placed a 100-hour moving average supporting the ongoing upside move.
The Bitcoin Bull Case Explained
Seeing the entire technical structure together, Mr. Prince said that BTC/USD has a higher likelihood of breaking out of the Channel range. If the pair does, then it would extend its upside move towards the so-called âC-Wave Extensionâ near $11,695.
â[There is a] 75 percent possibility [that] Bitcoin manages to consolidate further ahead between the Channel and the Trendline,â Mr. Prince wrote. â[Then] it would move on to form the C-Wave Extension.â
The bullish prediction appeared a week after Bitcoin rejected the $11,750-resistance. Traders increased their bids for the cryptocurrency after Square, a global payments platform headed by Twitterâs Jack Dorsey, showed $50 million of BTC in its balance sheets.
That raised speculations about Bitcoinâs growing eminence among institutions as a store-of-value asset. Lately, many Wall Street asset management firms and independent corporations have sold their cash reserves to gain exposure in Bitcoin. The migration comes out of their fears that the US dollar would lose value in the future.
Mr. Prince acknowledged those fundamentals while pushing his bullish narrative forward. The analyst noted that BTC/USD could hold above the Ascending Trendline because that is from where the âsmart money is taking up trades from inexperienced investors.â
âExplosionâ Theory
In an email statement to Bitcoinist, Konstantin Anissimov â the executive director at CEX.IO crypto exchange, said that he expects the prices of Bitcoin â as well as Ethereum â to explode in the coming sessions.
âNot only publicly traded companies are adding BTC to their balance sheets, but CFTC Chairman Heath Tarbert said to be âimpressedâ by the progress ETH has made to become the âworldâs computer,â said Mr. Anissimov. âSuch an endorsement is quite significant as it shows that the mass adoption of these digital assets is happening right now.â
Bitcoin and Ethereum will march towards new yearly highs, he added.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.