Somehow, someway, Bitcoin has managed to rally over the past five weeks, amid the most uncertain economic conditions we’ve seen in years, even more so than since 2008’s Great Recession.
The rally has been so strong that since the March 12th “Black Thursday” crash, the cryptocurrency has managed to print five — yes, five — green weekly candles in a row for the first time since 2019’s small bull run, as analyst JofDom noted. That’s to say, if Bitcoin closes above ~$7,150 next Sunday, there will be six weeks in a row where the crypto has gone higher.
The candles represent a rally of nearly 100%.
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Although impressive, no doubt, analysts are starting to build an expectation that Bitcoin isn’t done yet, citing a convergence of technical and fundamental factors suggest BTC has room to the upside.
Bitcoin Has Room to Rally, Analysts Say
In the short term, analysts think Bitcoin is ready to rally even higher.
Per previous reports from NewsBTC, a simple fractal analyst by a popular crypto trader shows that Bitcoin’s price is on the verge of rallying 35% in the coming two to three weeks. The analyst noted that there are clear similarities between the price structure now and that seen during the December bottom, then the subsequent rally in January.
The bullish sentiment has only been added to by the rapidly growing number of user inflows, as observed by on-chain analytics platform Glassnode. The company found this week that the number of new users taking advantage of the Bitcoin network has tripled in the past few weeks, which is a trend last seen prior to 2019’s bull rally.
Some Beg to Differ
For some, though, the calls for Bitcoin to return to a booming bull market seem immature. A hedge fund manager named Mark Dow — the same investor who shorted the $20,000 top in December of 2017 and covered 12 months later at the $3,000s bottom — recently shared that he thinks the cryptocurrency is on the “edge of a cliff,” adding:
“I’ve been saying…that Bitcoin on the chart is facing massive overhead resistance. Based on this chart, this rn is a textbook opportunity to short,” he said while pointing to the below image.
Furthermore, Avi Felman — a trader and analyst at crypto-asset fund BlockTower, observed two signs that a reversal or at least a temporary correction was imminent:
The Tom Demark Sequential just printed a “9” candle on the three-day chart for BTC. Previous “9” candles on this chart marked the mid-March bottom and the December 2019 bottom, but front-ran the $10,500 top seen earlier this year.
Bitcoin has failed to break its three-day 50 and 200 simple moving average.
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Photo by Léonard Cotte on Unsplash