Bitcoin Could Retrace Toward $15,000, Analysts Say
Bitcoin has exploded higher in the past week. Since the weekly lows of $13,300 that was triggered due to the election, the coin has exploded as high as $15,975. The coin is up 50% in the past month and above 10% in the past seven days alone.
The price of the leading cryptocurrency currently is $15,600, with Bitcoin facing a slight retracement over the past few days. Bitcoin’s drop has resulted in a rally in the price of altcoins, as capital is cycling from BTC profits into other cryptocurrencies.
Despite Bitcoin holding strong in the $15,000 range, some think that a further retracement will follow.
The crypto-asset analyst that predicted Bitcoin would see a V-shaped reversal in March shared the chart below on November 6th. The chart shows that the cryptocurrency is currently trading in the midst of a descending channel pattern, which suggests a move to $15,000 will take place shortly. $15,000 is rather close to the current price but it would still mark a notable retracement from current levels.
Chart of BTC's price action over the past few days with analysis by crypto trader Bitcoin Jack (@BTC_JackSparrow on Twitter). Source; BTCUSD from TradingView.com
Of note, the chart does show that after Bitcoin retraces to the $15,000 region, it is likely to spring above $16,000 for the first time since early 2018. The chart shows that the coin will do so by breaking its short-term downtrend and reclaiming some important technical levels on a short-term basis.
Corroborating the expectations of a further move higher, the long-term trends for Bitcoin remain bullish.
Ikigai Asset Management’s Hans Hague recently noted that per his analysis, Square and Grayscale have accumulated $2.3 billion worth of the leading cryptocurrency over the course of Q3 2020. This is relevant because, over that same time frame, Bitcoin miners created over $1 billion worth of BTC.
This means that there was more buying pressure from those two firms alone than natural selling pressure via mining.
Many expect this buying demand to eventually culminate in a rapid surge to new highs as Bitcoin buyers continue to dramatically outweigh sellers.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Analyst Who Called March's V-Shaped Reversal Says Bitcoin May Drop to $15k
Originally from Bitcoinist.com https://ift.tt/3eHz04s
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