There’s no doubt Bitcoin has been on a tear over the past 50 days. Since bottoming at $6,400 in the middle of December, the price of BTC has rocketed higher and higher, surging as high as $1,080 at the moment.
According to a number of analyses, however, the crypto market’s surge is not done yet, citing a confluence of technical factors that imply Bitcoin could appreciate to $20,000 in the coming months.
Late last year, all crypto traders could talk about was the similarities between Bitcoin’s price action in 2019 and that seen in the larger cycle of 2017 to the end of 2018; both time periods had a parabolic run-up, a blow-off top, a fakeout that failed to restart the bull trend, and a descending triangle that broke lower to send prices falling.
Popular crypto analyst Ambroid recently touched on this, noting in a chart that Bitcoin’s price structure since November 2019 is eerily reminiscent of that of late-2018 to early-2019; both periods had a multi-week consolidation in a tight range, a strong breakout, a three-week consolidation, before another thrust higher.
Well that should come as no surprise, BTC is on a parabolic course since the November low (even before the December bottom). The channel perfectly fits the last two touches on the lower trend-line but is now trading the longest (since the beginning of January) close to this trend line . Since we are near the 10350 1W Resistance level , that should ring an alert.
In it, he made the case for BTC to retest $20,000 by July 1st, 2020 — not exactly May but close enough. As crazy as this may sounds, he pointed to a confluence of positive technical developments.
There’s also an analysis by Wall Street research firm Fundstrat Global Advisors, which revealed that whenever Bitcoin crosses above its 200-day moving average, the six-month forward average gain is 197%, implying a price of far above $20,000 by July or August.