Bullish Bitcoin Price Formation Hints At Short Term Move Above $6K

Avatar Tony Spilotro 5 months ago

Ever since the start of April when Bitcoin price rallied nearly a grand in roughly an hour, bullish sentiment has returned to the crypto market, and many have begun confidently calling the bottom as in.

Following the massive price surge, Bitcoin price has consolidated above $5,000, and is forming an extremely bullish pattern on price charts, suggesting that a move up above $6,000 may be the next stop for the leading cryptocurrency by market cap.

Crypto Analyst: Bitcoin Price To Break Above $6,000 In Short Term

Bulls have managed to maintain the upper hand after early April’s powerful rally through resistance at $4,200 to over $5,000, and the price of Bitcoin is currently trading at $5,300. The price of the first ever cryptocurrency has been ranging between a local high of $5,450 and $5,000, suggesting that price consolidation is occurring in the market.

Related Reading | Crypto Analytics Firm: Single Strategic Actor Responsible for Bitcoin Price Surge

However, according to a prominent crypto analyst, CryptoRand, the recent price action has resulted in a large bull pennant, with a target over $6,000.

Bull pennants occur when bears are overcome with a powerfully bullish movement upward, creating a pole. The pennant begins to take shape as the resulting price action narrows within a range, until a breakout occurs ahead of the apex of the triangular, pennant shape.

These price structures when found in crypto or stock charts indicate consolidation ahead of a short-term price continuation. Because the preceding move was a powerful upward movement, price should continue further upward in the coming days.

Thomas Bullkowski has found that most pennants resolve within roughly 3 weeks of price consolidation. The previous bullish movement creating the pole occurred exactly three weeks ago, which could suggest that Bitcoin is set for a big move relatively soon.

Another Crypto Analyst Reiterates Move Above $6,000

Other crypto analysts have joined in on the bullish prediction. Crypto analyst Lisa Edwards is also expecting a large move up above $6,000 in Bitcoin in the short term. While she’s not ruling out a retrace after the movement to $4,700, following that she expects Bitcoin to target over $10,000.

While looking toward $10,000 so soon after a long, gruesome bear market may seem overly bullish, given the fact that Bitcoin price can skyrocket so quickly due to its scarce supply, and with so much capital sitting on the sidelines in the crypto space, a strong enough break of $6,000 could cause widespread FOMO as the bear market bottom will likely be confirmed, and the case for a new bull market will be all the talk across the industry.

Related Reading | Bitcoin Price Chart Shows Textbook Bump and Run Reversal Bottom 

$6,000 won’t likely go down easily, as the strong resistance level once played seemingly impenetrable support. But just as it eventually broke when acting as support, breaking it as resistance is definitely not out of the question, and will be looked at as the most important signal that the tides are turning from bearish to bullish for the longer term.

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