There’s no doubt Bitcoin has been on a tear over the past 50 days. Since bottoming at $6,400 in the middle of December, the price of BTC has rocketed higher and higher, surging as high as $9,900 earlier today — inches shy of the key $10,000 price point.
According to a number of analyses, however, the crypto market’s surge is not done yet, citing a confluence of technical factors that imply Bitcoin could appreciate to $20,000 in the coming months.
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Bitcoin Could Hit $20,000 In May, Fractal Suggests
Late last year, all crypto traders could talk about was the similarities between Bitcoin’s price action in 2019 and that seen in the larger cycle of 2017 to the end of 2018; both time periods had a parabolic run-up, a blow-off top, a fakeout that failed to restart the bull trend, and a descending triangle that broke lower to send prices falling.
Popular crypto analyst Ambroid recently touched on this, noting in a chart that Bitcoin’s price structure since November 2019 is eerily reminiscent of that of late-2018 to early-2019; both periods had a multi-week consolidation in a tight range, a strong breakout, a three-week consolidation, before another thrust higher.
$BTC thoughts right now, structure looks too similar.https://t.co/GIYXfCswrK
— Ambroid (@anambroid) February 8, 2020
Ambroid depicted that if Bitcoin completes this seeming bottoming fractal, the price of the cryptocurrency could trade well past $20,000 around the time of May this year, which would line up with the block reward reduction or “halving.”
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This Forecast Isn’t Entirely Baseless
There are other technical analyses backing this lofty sentiment, as crazy as it seems.
Financial Survivalism, a pseudonymous analyst that in early January called Bitcoin’s rally to the $9,000s, recently released an extensive TradingView post entitled “Why I believe Bitcoin will retest All Time Highs by July 1, 2020.”
In it, he made the case for BTC to retest $20,000 by July 1st, 2020 — not exactly May but close enough. As crazy as this may sounds, he pointed to a confluence of positive technical developments:
The Lucid Stop and Reversal has printed a bullish candle for the first time since July 2019, when BTC was trading well above $10,000.
The Average Directional Index on a daily basis has seen the first bullish crossover since March 2019.
And much more.
There’s also an analysis by Wall Street research firm Fundstrat Global Advisors, which revealed that whenever Bitcoin crosses above its 200-day moving average, the six-month forward average gain is 197%, implying a price of far above $20,000 by July or August.
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