Bitcoin Price Will Revisit Above $10,000 Based in These Two Bullish Factors

Tony "The Bull" Severino

5 years ago

3 mins read

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Bitcoin price this week made a strong push above the important psychological resistance level of $10,000 but failed to hold it as support.

While the cryptocurrency fell back below after a strong rejection and flash crash, two bullish factors are pointing to a revisit to above $10,000 in the very near term.

Bitcoin Price Forms Bullish Wedge, Is a Retest of $10,000 Imminent?

Bitcoin price has ballooned by as much as over 30% since the start of the year and is up over 40% from lows around $6,400 it set back in late 2019.

The first-ever cryptocurrency burst through the $7,000 range and after it, $8,000 and $9,000 fell with ease. It wasn’t until Bitcoin began to push above $10,000 that the recent bullish momentum started to wane.

But bulls may just have been biding their time, letting bears get the upper hand momentarily for a surprise move.

Two factors are likely signaling that Bitcoin price will soon return above $10,000 with the goal of holding it as support during this next attempt.

After the rejection at $10,200, Bitcoin price fell over $250 in a matter of minutes in a flash crash. The fall to $9,700 where support caught the crypto asset from falling further, has now formed a descending wedge formation.

Usually, descending wedges (especially preceded by the rising trend) are broken to the upside.
P.S. But remember, there is a saying: "there are three kinds of lies: lies, damned lies, and statistics"…$BTC $BTCUSD #bitcoin pic.twitter.com/CcIK8MNo1N

— CryptoHamster (@CryptoHamsterIO) February 11, 2020

Descending wedges are typically a bullish formation, that breaks upward to carry an asset’s price even higher.

The formation signals that Bitcoin may make another run toward $10,000 in the very near term.

CME Gap Signals Revisit of Recent Highs

Further backing up this chart pattern, is the fact that CME Bitcoin futures charts have left a gap over the weekend, from around $9,900 to $10,200.

CME gaps are statistically filled within the first week of price action reopening, suggesting that not only will Bitcoin revisit above $10,000 based on this information, it could do so within the next few days of trading.

Oftentimes, though, gaps remain open for an extended period of time, or even indefinitely. But they still act as a critical piece of information for analysts to consider when taking positions and planning entry or exit points.

Bitcoin price will need to not just push back above $10,000 but it will need to hold strong to turn the powerful overhead resistance into support.

$10,000 has been a key level for Bitcoin throughout the past few years, with it acting as a launchpad for Bitcoin’s 2017 parabolic rally to $20,000.

It Bitcoin can cleanly break through the level once again, we could see a retest of the former all-time high before the year’s end as the level has been known to spark serious FOMO across the crypto market.

Featured image from Shutterstock

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.