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- Bitcoin corrected by over 50% from the 2019 high of $13,880.
- With the retracement in the last six months, some analysts believe that the bottom is in.
- The number one crypto is flashing accumulation signals convincing popular traders that the cryptocurrency has turned bullish in 2020.
Bitcoin may have started 2019 strong but ever since it posted a high of $13,880 in June, the top cryptocurrency has been correcting. It dropped to as low as $6,425 in December. At that point, bearish calls for a revisit to $5,000 levels were strong.
Those who have been waiting to buy below $6,000 have been left out. The digital gold is now trading above $7,000 and analysts are expecting bitcoin to leave this price area soon. Many see a base being formed, which can propel the number one cryptocurrency to greater heights early this year.
Analysts Claim Bitcoin Has Bottomed Out
After a weak second half of 2019, it appears that the worst is behind for the most dominant cryptocurrency. A number of widely-followed analysts on Twitter say that bitcoin is carving a bottom.
For instance, Faisal Sohail believes that the cryptocurrency has already tapped the bottom when it dropped to $6,475 in December. He believes that the digital asset will trade between $7,000 and $12,000 before the halving.
User Bitcoin Macro supports Faisal’s view. In an emphatic tweet, Bitcoin Macro exclaims that the bottom is already in. He also tells his followers not to get shaken out.
Majin, Crypto Twitter’s biggest bull, has also turned bullish after months of uncertainty. The liquidity game theorist believes bitcoin will take off and leave $7,000 behind.
Accumulation Pattern to Send Bitcoin Above $11,600
BTC has been range trading between $6,700 and $7,600 since November 20, 2019. That’s a $900 range over 45 days. To many analysts, this is a sign that a new base is being built to prepare bitcoin for the next leg up, hence, the call for a bottom.
Charles Edwards, head of digital investment firm Capriole, sees a potential accumulation pattern forming. More importantly, he believes that the bottom is already in. According to Edwards, his bias would be confirmed once bitcoin trades above $8,000.
Edwards is not alone in seeing a pattern indicating that whales and other smart money investors are accumulating the largest cryptocurrency. Trader CryptoWolf also sees an accumulation pattern developing. His bias will be confirmed once the price goes above $8,090. A move above that level would also trigger the breakout from a large falling wedge.
CryptoWolf’s initial target is $9,550 and then $11,600.
Traders Starting to Have a Rosy Outlook
With these signals, other traders are expressing their optimism on the prospects of the top cryptocurrency. The popular trader The Crypto Dog tweeted that he’s bullish on bitcoin.
The widely-followed Crypto Rand shares The Crypto Dog’s upbeat outlook on the dominant cryptocurrency.
Is it a coincidence that the top analysts are tweeting bullish statements on bitcoin as the top cryptocurrency prints an accumulation pattern? Probably not. It’s very likely that these analysts are also seeing the bottom or base-building signals on the number one coin. If they’re right, then strap in. Bitcoin’s 2020 price action might start off with fireworks.
Disclaimer: This article represents the author’s opinion and should not be considered investment or trading advice from CCN.
This article was edited by Sam Bourgi.
Last modified: January 6, 2020 5:00 PM UTC