Analysts are widely growing bullish on Bitcoin’s mid-term outlook as the cryptocurrency continues consolidating within the upper-$11,000 region.
After a bout of slight weakness last week, BTC is beginning to express signs of strength as buyers push its price up towards $12,000.
Until it is able to firmly surmount this level and gain a strong foothold within the $12,000 region, it still remains vulnerable to seeing notable downside.
One analyst is now pointing to Bitcoin’s historical market cycles to offer guidance on where the benchmark cryptocurrency may trend in the near-term.
Based on previous bull markets, he notes that Bitcoin may be able to set new all-time highs as soon as January of 2021.
There are technical factors that seem to support the notion that this is a realistic possibility, and analysts are pointing to Bitcoin’s consolidation above a crucial multi-year trendline as one bullish factor.
Bitcoin Shows Signs of Strength Despite Ongoing Consolidation Phase
At the time of writing, Bitcoin is trading up over 1% at its current price of $11,800. This is around the price at which it has been trading throughout the past few weeks, with bulls being unable to break its key resistance at $12,000.
Today’s price action has favored bulls, as selling pressure was previously putting the crypto at risk of venturing down towards its support at $11,000.
It now appears that BTC will either continue consolidating or push towards its $12,000 resistance in the hours ahead.
One trader recently put forth a chart showing that Bitcoin’s recent consolidation trend has been overwhelmingly bullish.
As seen below, the chart he offers shows that the crypto has been consolidating above a multi-year trendline that was formed in late-2017, with its consolidation above this pattern suggesting that further upside is imminent.
“God save you if you are bearish on BTC,” he noted in reference to the chart.
Image Courtesy of Crypto Birb. Chart via TradingView.
Historical Market Cycles Suggest BTC is Poised to See All-Time Highs in Early-2021
Another analyst recently explained that a peek at Bitcoin’s historical market cycles show that upside could be imminent in the next few months.
He notes that – assuming history rhymes – the crypto may be able to journey past $20,000 in January of 2021.
“Historical time cycles suggest that BTC will be ready for a new all time high in January of 2021. If the pattern follows then that would only be the beginning,” he explained.
Image Courtesy of Tyler Coates. Chart via TradingView.
For this possibility to remain valid in the near-term, it is imperative that Bitcoin extends its multi-month uptrend and pushes past $12,000.
Featured image from Unsplash. Charts from TradingView.
