Just three hours ago, Bitcoin’s latest block reward halving finally came to pass.
Aside from some short-term volatility — rallies and crashes of a few percentage points here and there — the cryptocurrency barely budged off the news from a macro perspective. Case in point: the cryptocurrency now trades at $8,600 as of the time of this article’s writing, about where it was just 24 hours ago.
Yet analysts are starting to become convinced that a return to the highs is possible in the coming days. One top trader, in fact, argued that he sees a world in which Bitcoin “pumps” towards $10,000 in the coming days.
Bitcoin Is Preparing to Rocket Even Higher
A top analyst, one that called that XRP would fall to $0.11-$0.13 early this year when markets were pumping, recently shared the image below.
Shown is BitMEX’s Bitcoin futures contract details, with the notable part of the image being the -0.2085% predicted funding rate in 16 hours. This means that should the predicted rate remain accurate, short positions will be paying longs 0.2085% every eight hours to maintain their positions.
Although 0.2085% may not seem like much, that fee can stack up once you involve leverage.
With that in mind, the trader shared: “Don’t be surprised if you see a quick pump and dump to $10,000… Crazy Bitcoin funding predicted rate.”
BitMEX data shared by @CryptoCapo_ (a Twitter handle)
Such high funding rate values are often seen near the reversals of market trends, like how the actual funding rate crossed below the ~0.15% extreme threshold during BTC’s crash in March.
This call for $10,000 was somewhat echoed by “PlanB” — a pseudonymous quantitative analyst in the space — during a recent live stream.
He argued that Bitcoin’s chart is currently looking like a textbook “Bart” formation, in reference to the common price action in Bitcoin markets where prices dump, then rally vertically to pre-crash levels in the span of a few days.
The long-term outlook is purportedly bullish as well, one trader explained.
The trader in question is the same one who said on March 13th, on the day that Bitcoin hit $3,700, that he thinks a bottom was in.
In a multi-part thread released on Monday morning, he asserted that he remains bearish in spite of Bitcoin’s recent crash.
Backing this optimism, he pointed to five market trends that have transpired:
Bitcoin’s recent drop was a “big shakeout” that has largely been absorbed by buyers, which have recovered BTC to $8,700
BTC retested and held key moving averages, such as the 50-week moving average and the 200-day moving average
Bitcoin’s price action is “arguably within wave 3,” which was a comment made in reference to his bullish Elliot Wave outlook
A “running flat” bullish pattern could develop
The drop allowed BTC to bounce off a historically important trendline.
Photo by Jörg Angeli on Unsplash