Over the holiday season, Bitcoin (BTC) has stalled in the low-$7,000s, finding itself stuck between heavy macro support in the mid-$6,000s and rather pertinent resistance in the high-$7,000s, which the cryptocurrency has been rejected by multiple times.
Related Reading: Why Bitcoin’s Hash Rate High Suggests Price Explosion On Horizon
Although some say that these rejections are indicative of an impending return to the $6,000s, then the $5,000s, a growing sentiment suggests the leading cryptocurrency could trade in the $8,000s and $9,000s in the coming weeks. To add credence to this narrative, the sentiment that BTC will trade around $9,000 this month has been supported by a number of technical analyses.
Bitcoin to Top $9,000 By End of January?
Cryptocurrency trader Velvet on Friday posted the below analysis, showing that he believes Bitcoin is currently in the midst of reflecting a textbook Wyckoff Accumulation pattern: a strong decline, a recovery and false breakout constricted by resistance, a drop to set a fresh bottom lower than the original, failed attempts to break past resistance, then a final shakeout prior to a surge back to pre-decline levels.
Right now, as Velvet suggested, Bitcoin is in its final shakeout phase of the pattern, with the price recently dropping to the $6,800s. Should this textbook technical analysis pattern play out exactly as the studies of Richard Wyckoff, a noted technician, says, BTC is likely to break $9,000 and maybe $10,000 by the end of January.
This is what I see..
I'll leave the narrative up to you. https://t.co/r0BaIYIwdH pic.twitter.com/2QqKGzY1GZ
— 𝓥𝓮𝓵𝓿𝓮𝓽 📊丝绒 (@888Velvet) January 3, 2020
Related Reading: Why Bitcoin Investors’ HODL Mentality Means a Price Surge Is Coming
Not Only Analysis Suggesting Bullish Momentum is Coming
Velvet’s assertions that Bitcoin is in the midst of an extended Wyckoff Spring/Accumulation pattern isn’t the only thing suggesting an immediate return to $9,000, maybe higher.
Per previous reports from this very outlet, the first week of every January over the past three years has seen the price of Bitcoin explode higher, as noted by trader SalsaTekila. in 2017, BTC gained 21.9% during the first seven days of the year; in 2018, it was 24.3%; and last year, it was 11.8%.
The same pattern playing out for Bitcoin yet again could mean that the asset will surge towards the $8,000s and $9,000s.
Also, Su Zhu, the chief executive officer of forex and crypto fund Three Arrows Capital, recently remarked on Twitter that he believes Bitcoin’s price outlooking heading into 2020 is looking rather bullish. The prominent commentator specifically cited his analysis of the BTC/USDT trading pairs and their premiums to BTC/USD markets and the overall price action, which shows there are “clear signs of accumulation and money flow back into risk.”
BTC/USDT premiums and price action show clear signs of accumulation and money flow back into risk.
Would not surprise me to see 9K+ before end of Jan.
— Su Zhu (@zhusu) December 28, 2019
Related Reading: Institutions Likely to Invest Big in Bitcoin in 2020; Here’s Why
Featured Image from Shutterstock
