Many analysts believe that bitcoin has already bottomed out. The bullish price action is prompting traders to call for a run-up to $14,000.
Bitcoin is starting the year with a bang. The top cryptocurrency is up by over 17% year-to-date, and we’re just two weeks into 2020.
While a pullback might be in order to consolidate gains, these analysts say there’s a strong possibility that the downtrend is a thing of the past. One trader predicts that bitcoin could soon rally over 65%.
Bitcoin has succumbed to a sharp run of profit-taking over the past six months.
After printing a 2019 high of $13,880, the cryptocurrency fell more than 50% to $6,430 in December. The bearish trend may have ended on Monday when BTC surged back above $8,000.
Widely-followed technical analyst CryptoBirb notes that the cryptocurrency finally closed above a six-month-long downtrend line.
The breakout has enormous bullish implications. Based on CryptoBirb’s chart, the bitcoin price appears to have broken out of a large bull pennant on the weekly chart. This is a continuation pattern suggesting the resumption of the uptrend.
That indicator may have prompted trader Beastlorion to predict that bitcoin would rally as much as 65% before hitting resistance at $14,000.
Not everyone is quite that optimistic.
Majin, “Crypto Twitter’s biggest bull,” believes that BTC may be running out of steam. He thinks it may be an opportune time to short the cryptocurrency.
Nick Hellman, vice president of LearnCrypto, said that the bitcoin price might have a bit of near-term upside. But it’s not going to $14,000 anytime soon.
Hellman told CCN,
The most bullish case calls for [bitcoin trading around] $9,200 before a correction.
In other words, Hellman expects bitcoin to suffer at least one more pullback before the cryptocurrency targets greater heights.
Mati Greenspan, founder of Quantum Economics, thinks it’s best to taper one’s expectations. He said,
We’ve seen so many of these rallies build up and fade away. For the moment, I’d be content with only modest gains that are more easily defendable.
Alex Kruger also chimed in on the possibility of bitcoin trading at $14,000. The economist told CCN,
I don’t think that will happen in 2020. [It is] always possible. Great if it happens. It would offer great trading opportunities.
Bitcoin may be showing signs of life, but thinking that it will shoot straight up and go parabolic is just wishful thinking.
Volatility is the name of bitcoin’s game, so expect a lot of wild swings as bulls and bears slug it out. A rally to $14,000 is certainly possible – but it’s far from guaranteed.
Disclaimer: The above should not be considered trading advice from CCN. The writer owns bitcoin and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
This article was edited by Josiah Wilmoth.
Last modified: January 22, 2020 11:38 PM UTC