Reason to trust
How Our News is Made
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Ad discliamer
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
Bitcoin has continued to rally higher since our last market update, recently retaking $9,300 for the first time since the crash on the morning of May 10th.
This strong recovery comes after Bitcoin fell as low as $8,100 due to a sell-off prior to the block reward halving, seen in the middle of the chart above.
Here is what analysts expect for the cryptocurrency market next.
Bitcoin Poised to See Short-Term Correction
While many believe that Bitcoin’s long-term outlook remains decisively bullish, fears are mounting of a short-term correction.
A top trader shared the chart below, indicating that from how he sees it, $9,300 is an optimal short opportunity because the cryptocurrency is running up against resistance.
A move above $9,500 would invalidate the bearish scenario, the analyst noted, but the short playing out will see Bitcoin fall all the way to the key horizontal levels around $7,800 in the coming days.
Another prominent analyst — one that has been historically accurate in analyzing Bitcoin — shared the skepticism. He recently pointed to a fractal of a previous rally in BTC’s history that is structurally similar to the one we just saw.
This fractal predicts that the cryptocurrency will fall to $6,400 in the coming weeks, which would be a 0.5 Fibonacci Retracement of the rally from the $3,700 lows. A move to $6,400 would mark another 25% worth of losses from the current price point.
Long-Term Trend Still Bullish
Although there is a potential for a correction in the near term, the long-term trend remains bullish.
Michael Novogratz, a former partner at Goldman Sachs, told CNN yesterday that he still thinks Bitcoin will hit $20,000 this year, citing the macroeconomic fundamentals.
Reducing "look stupid" risk & a global "fiscal orgy" could see $BTC hit $20K by year-end! Colorful as ever conversation with @novogratz from Galaxy Digital. pic.twitter.com/sqdFZxKiNK
— Julia Chatterley (@jchatterleyCNN) May 12, 2020
Featured Image from Unsplash
