Bitcoin is having a mixed July so far. The price of the flagship cryptocurrency has hit a slump of late after beginning the month on a solid footing thanks to President Trump’s latest tirade and the aspersions being cast on Facebook’s Libra cryptocurrency.
But despite the recent dip in bitcoin prices, one trader still believes that the cryptocurrency could end July at $16,000.
TradingShot is a well-followed provider of trading signals on TradingView.com with more than 7,500 followers. The platform estimates that bitcoin’s parabolic rise will push the cryptocurrency higher until it reaches a new peak. According to TradingShot:
“The Inverse Head and Shoulders serves the purpose of deflating this rally with a sharp pull back and consolidation before the Channel Up slowly pushes it to a new peak.
We are currently completing the Inverse Head and Shoulders pattern and at the same time having already started trading within the Channel Up.”
The inverse head and shoulder pattern helps traders predict downtrend reversals. During this pattern, the price of bitcoin will fall to a trough and then rise again. Then it will again fall to a trough that’s deeper than the previous one before going up. Finally, the bitcoin price will fall once again, but this time not as deep as the preceding trough.
After the last trough, the price of bitcoin will head higher, and TradingShot estimates that breaking above $12,400 meant that the bullish trend has been restored.
The trading platform also points out that the current bitcoin bull cycle is stronger than the last one. This is why the cryptocurrency’s next rally will take it to a peak of $16,000 within this month, according to TradingShot.
TradingShot is one of the several technical analysts predicting that higher bitcoin prices are on the way. Crypto trader Josh Rager said last month that we are just a fourth into the current bitcoin bull cycle until the next peak arrives. He added that the cryptocurrency could eventually hit $60,000 by the end of the current bull cycle.
Of course, bitcoin might have taken a hit after Trump’s comments on cryptocurrencies and Facebook’s Libra, but bulls shouldn’t ignore the positive technical and fundamental signals.
At the end of 2018, analysts expected institutional investors to pile into bitcoin and cryptocurrencies. The good news is that the prediction has turned out to be true so far in 2019. Bitcoin-focused investment firm Grayscale revealed at the end of June that its assets under management (AUM) have exceeded $3 billion.
Grayscale had $1.3 billion in AUM at the beginning of May.
Don’t be surprised to see institutional investors buy more of cryptocurrencies, especially bitcoin, as many of them are favoring an investment in this asset class.
In all, a combination of both fundamental and technical factors can keep pushing bitcoin prices higher. And, it won’t be surprising to see TradingShot’s prediction come true thanks to the strength of the current rally.
Last modified: June 23, 2020 2:45 PM UTC