Bitcoin Prepares to Rally to $12,000 as Price Forms Historically Bullish Pattern

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[NEWS BLOG]: Bitcoin Prepares to Rally to $12,000 as Price Forms Historically Bullish Pattern

After attempting to break decisively past $10,000 for the second time in a week, Bitcoin was rejected, plunging as low as $9,200 for the umpteenth time in a matter of days.

The tepid price action has made some investors cautious that more downside for the flagship cryptocurrency is possible, citing the loss of the key $9,500 support.

Prominent analysts, however, have begun to spot silver linings in Bitcoin’s chart that are suggestive of a reversal to the upside, not an extension to the downside as some analysts have come to expect. 

"Bitcoin Readies for Next Leg Higher"

Bitcoin seemingly moves without rhyme or reason, but the cryptocurrency, just like any other asset, has patterns, has rhythms, that may lend insight into future price trends.

Mohit Sorout — a partner at crypto hedge fund Bitazu Capital — shared once such pattern when he published the chart below, indicating that Bitcoin “loves to paint” this price action.

According to Sorout, Bitcoin followed this exact schematic twice last year, once prior to rallying from $5,000 to $7,000, and another time before rallying from $8,000 to the $14,000 yearly highs.

Considering Bitcoin’s price action over the past few days matches the left side of the schematic perfectly, a near-term rally towards ~$11,500 has been made that much more likely, Sorout’s chart indicated.

"Not the Only Positive Sign"

Sorout’s schematic isn’t the only sign suggesting that Bitcoin will soon make a run past $10,000 to new all-time highs.

The same trader that predicted Bitcoin would bottom at $3,200 six months before it did argued this week that BTC’s chart implies an imminent upswing towards the $12,000 region.

In reference to the chart below, the analyst remarked that “Bitcoin [recently] smashed past” a key technical resistance while the cryptocurrency has held crucial technical levels. This led him to the conclusion that a move towards $11,500 in July is possible.


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OTHER RELATED NEWS

What is XRP ?

XRP is a token used for representing the transfer of value across the Ripple Network. The main purpose of XRP is to be a mediator for other - both cryptocurrencies and fiat - exchanges. The best way to describe XRP is a ‘Joker’. Not the creepy Batman enemy, but the card that can be any other card. If you want to exchange dollars to euro, it can be dollar with dollars and euro with euros to minimize the commission. As highlighted above, the transaction cost on Ripple is $0.00001.

An interesting fact: after the transaction the amount of $0.00001 ‘disappears’ - read more.

Cryptocurrencies Show Signs of Maturing But Remain Too Risky

Bitcoin (BTC) presented historically low volatility this year, argues the Dec. 2019 SFOX report released on Jan. 8. Coupled with a lower correlation with altcoins, there are emerging signs that the market could start to behave in a more predictable way. However, the cryptocurrency asset class remains disproportionately risky compared to the stock market.

In its final monthly report for 2019, the analytics firm SFOX analyzed the yearly performance of Bitcoin and other cryptocurrencies.

Compared to traditional assets such as gold and stocks, Bitcoin held a remarkably low correlation index for the past six months. Its average 30-day correlation amounted to -0.037 - read more.

XRP Gains Ground Against Bitcoin as Active Address Count Remains High

XRP has seen some wild price action over the past few days and weeks, with investors sending the previously embattled token rocketing by over 300% following its break above the long-held trading range between $0.20 and $0.30.

The selling pressure in the mid-$0.60 region has proven to be quite intense in the past and may continue hampering its price action in the days and weeks ahead as it tries to surmount this.

This breakout isn’t the only thing that helped the crypto rally higher, as the upcoming Spark airdrop was also a catalyst for this push higher.

Because many investors now look - read more.

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