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Seemingly in response to news that China has officially endorsed blockchain development, Bitcoin (BTC) surged on Friday, liquidating $150 million worth of BitMEX shorts in the process. Ouch.
At its daily peak, the cryptocurrency’s price hit $8,800 — the highest it had been in over three weeks. As of the time of writing this article, Bitcoin is trading for $8,600.
While the bullish momentum has seemingly paused for now, analysts are convinced that continuation to the upside is in the works for the cryptocurrency market, especially considering rapidly growing volumes on Bakkt and broader bullish macro developments.
Related Reading: Will Bitcoin Death Cross Lead to Another Year-long Bear Market?
Bitcoin Price Not Done Rally, Analysts Argue
Popular trader Wolf noted that Bitcoin’s 12-hour chart and Moving Average Convergence Divergence (MACD) is currently printing a massive bullish divergence, with prices falling as the indicator has trended higher. He claims that “after a pump like this, [a bullish rally usually follows.]”
Bullish Divergence on 12h MACD.
After a pump like this, we usually go into a bullish rally.#bitcoin pic.twitter.com/u9hFiV0wPY
— ImNotTheWolf (@ImNotTheWolf) October 25, 2019
Raoul Pal, the chief executive of Global Macro Investor and Real Vision, echoed this optimism, writing in his own analysis:
“A fitting end to Gold vs BTC. They both feel like they are trying to break higher after consolidations. BTC is very interesting here… had to take some pain from the failure of the initial preferred wedge pattern but let’s see how this set up works.”
Nik Jaremczuk, a Bitcoin researcher and on-chain analyst, has gone as far as to say that this move has solidified his opinion that “BTC price will not return to $7k,” before adding that he could see Bitcoin rallying to $11,300 after a breakdown of a descending trend line.
https://twitter.com/truenomic/status/1187836236809068544
Related Reading: Bitcoin Price to Bottom in Mid-November at Around $6,700: Analysis
Featured Image from Shutterstock
