From 2015 to 2017, the bitcoin price surged from around $150 to $20,000 in a parabolic movement, demonstrating a staggering gain of 13,233 percent within a two-year period.
In the next several years, according to the analysis published by respected trader Peter Brandt, the bitcoin price could potentially recover quickly from the current level at $5,000 to over $50,000 if it continues to show strong momentum.
As reported by CCN.com, on Saturday, Brandt laid out strong technical reasons to support the potential of bitcoin to rebound beyond the $20,000 all-time high to a range between $50,000 to $72,000.
Brandt told Yahoo that “analogs” are holding well and that the cryptocurrency market is in an ideal position to jump back into a parabolic bull market.
“I think the analogs are holding remarkably well and based on those analog studies, I think cryptos now will go back into a parabolic bull market. The only question I have is do we rally here some and then sometime in late summer check the late 2018 lows or not? There is a chance that it does, there’s a chance that it doesn’t,” he said.
In the past four months, as soon as bitcoin tested key resistance levels above $4,200, the dominant cryptocurrency showed a fairly large retracement, falling back to the $3,000 region.
Following its impressive 20 percent rally from $4,200 to over $5,000, it dropped shortly below $5,000 but recovered fairly well since.
In the last 24 hours, the valuation of the crypto market has recovered by $4 billion while the bitcoin price rebounded from around $4,900 to $5,169, by more than 3 percent.
Both fundamental and technical indicators point toward a strong near-term price trend of bitcoin, especially if the asset can sustain its momentum in the weeks to come.
Thomas Lee, the head of research at Fundstrat Global Advisors, said:
We see fewer reasons to question the recent recovery [in] Bitcoin prices—the best quarter since 2017. While the key technical price hurdle is BTC closing above its 200D (currently ~$4,600 and falling by $15 per day), we see 2019 as positive risk/reward.
The projection of the bitcoin price by Brandt and other technical analysts in the space primarily depends on the short-term performance of bitcoin, specifically whether the asset will be able to remain above crucial resistance levels.
But, alternative cryptocurrencies and other major crypto assets in the likes of Litecoin, Ethereum, and Binance Coin have recorded large gains in the past several weeks, showing that the overall sentiment around the cryptocurrency sector remains positive.
Last modified: August 2, 2020 10:57 AM UTC