The timing of the surge was eerie: in the same five or ten minutes, Bitcoin surged 2% out of left field as the Shanghai Stock Exchange Composite dropped 8% on the fear of the coronavirus outbreak affecting the economy.
While the cryptocurrency has since retraced slightly, finding itself changing hands for $9,550, analysts say that the latest move in Bitcoin’s price, which sets a new multi-month high, is a precursor to even more gains in the coming weeks.
Bitcoin Poised to Surge Even Higher, Analysts Say
Dave the Wave, a legendary cryptocurrency trader who in the middle of 2019 called that Bitcoin would decline to the mid-$6,000s before heading higher, recently posted the below tweet.
In it, he noted that BTC is currently trading in a mini parabola pattern, marked by rapidly increasing upward price action. The parabola, should it play out in full, means that the price of the leading cryptocurrency will hit $11,200 or so around the end of February. That would represent 18% rally from the current price point.
— dave the wave (@davthewave) February 3, 2020
Bitcoin analyst and commentator on institutional involvement in cryptocurrency MacroScope noted that he thinks “dips from here would be short-lived because of new money looking for entry due to global macro,” liking citing the volatility in the Asian markets as aforementioned and broader geopolitical risks.
There’s also CryptoBirb, who noted that the performance of the leading cryptocurrency is January is likely a precursor to an even larger move higher.
Per the analyst, Bitcoin formed a “strong engulfing” candle in January, bouncing off a zone of high demand in the $6,000s. This, he claims, signifies there is “high time frame demand” for BTC. He added that with the candle closing above the three-month resistance of the $9,100 price point, an even larger bullish reversal is likely in store for the crypto asset market.
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