Bitcoin Surges Back to $8,000, Could Rally Higher
In a surprising move, Bitcoin (BTC) bulls have returned in a move straight out of left field. After wallowing in between $7,500 and $7,800 for a number of days, buyers recently pushed the cryptocurrency back up to $8,000 — or just shy of this auspicious level anyway. Most didn’t expect such a bounce, but it has been welcomed by a number of analysts, many of which hope that BTC will soon resume its uptrend.
While this move seems innocuous enough, one analyst is suggesting that this validates a bullish fractal, implying that Bitcoin could rally in the coming days. Analyst Filb Filb believes that the inverse of Bitcoin’s current price action is looking much like it did during December’s bottom, especially from the viewpoint of BTC’s four-hour chart.
During December, Bitcoin saw a steady increase in its Relative Strength Index (RSI) and On-Balance Volume (OBV) indicators over a number of weeks, all while BTC traded within two channels.
As seen below, the leading cryptocurrency is following that exact pattern now, having seen a sustained increase in RSI and OBV and having traded within channels seen in December. If history is of any guide, Filb suspects that Bitcoin may range between $7,600 and $8,000 for another week or two, break past $8,000, and then slowly trend back to near $9,000.
Filb’s fractals have historically been rather accurate, giving this recent one some credence.
This recent analysis comes a few weeks after he suggested that BTC is poised to rally past $10,000. While this may not be valid right now, as market conditions have shifted over the past few days, Filb then stated that Bitcoin has the fuel to rally past $10,000 to potentially tap $12,000.
As reported by Ethereum World News previously, he explained that in early-2018, 7,300 BTC worth of shorts opened on Bitfinex in the $11,600 to $13,800 level. Assuming that some of these positions have yet to close, Filb explains that as the cryptocurrency market continues to push higher, shorts will become increasingly under pressure to cover, thereby buying BTC spot and pushing up prices as a result.
What’s more, he expects for the “Fear of Missing Out” (FOMO) and the 0.618 Fibonacci Retracement level to act as a magnet, potentially giving Bitcoin the legs to run to the $12,000 range. With this, he concludes that “Bitcoin has enough in the tank to break $10,000”.
Title Image Courtesy Dmitry Moraine Via Unsplash