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On Wednesday morning, it seemed as though things were about to go south for the Bitcoin market yet again. For those who missed the memo, notable Korean cryptocurrency exchange Upbit revealed that it had been hacked for $50 million worth of Ethereum (ETH), sparking an immediate 2% sell-off that some described as a “black swan” event that could tank this market for weeks.
Related Reading: Eerie Bitcoin Fractal Suggests Bottom in at $6.6k, Surge to $8k Likely
Contrary to these fears, though, Bitcoin jumped. In fact, after hitting $6,800 on Wednesday morning, the cryptocurrency shot all the way back up to $7,600 — a nearly 15% move. Though the bullish momentum has paused since then, with BTC falling slightly to $7,500, many say that the fact that Bitcoin has maintained its gains is a sign that a short-term bull case is starting to grow for the crypto market yet again.
Building Bitcoin Bull Case
Bitcoin’s bull case is rapidly building, according to an array of recently-published analyses. Former eToro analyst and founder of Quantum Economics Mati Greenspan noted that BTC is resting the neckline of a bullish inverse head and shoulders pattern as the price has entered an extremely short-term bull flag, which has a high likelihood of breaking higher.
“Past performance is not an indication of future results, but as far as TA goes, this setup is extremely bullish,” Greenspan wrote in reference to the chart below.
Retest of the neckline with a bullish flag.
Past performance is not an indication of future results but as far as TA goes this setup is extremely 🐂ish. pic.twitter.com/J4WriL8dti
— Mati (@MatiGreenspan) November 28, 2019
It isn’t only that. Per previous reports from NewsBTC, analyst Stillman noted that Bitcoin’s price action over the past few days looks much like it did during the bottom on December 15th, 2018 at $3,150.
A structure that I am following closely right now, $BTC December 2018 reversal 1h vs today 90min. RSI congruence marked green. pic.twitter.com/4q07zKRBm3
— Stillman (@Stillm4n) November 26, 2019
If the fractal plays out in full, Bitcoin could easily rocket back into the $8,000 price range by the end of the week, which would mark a 10% surge from the current price point of $7,200.
Related Reading: Crypto Tidbits: Bitcoin Dives Under $8,000, Fidelity Bags Trust License, SEC Takes Second Look at ETF
Not So Fast: Fractal & Resistance Analysis Implies Downside
While there is a growing bull case for a bounce to $8,000, Bitcoin is still seeing a few bearish signs. Trader Chonis recently noted that “it’s hard to get bullish” with BTC remaining on the underside of the key $7,800 price level, which has acted as both key resistance and support on multiple occasions over the past year. BTC will need to flip $7,800 into support on the one-day chart for a bullish move to be confirmed, some analysts say.
$BTC – it’s hard to get that bullish yet with #bitcoin being on the under side of this level that has held support many times, and backtested today as resistance… pic.twitter.com/5SNk2Svhud
— BIG Chonis (@BigChonis) November 28, 2019
That’s not all. The below analyst recently noted that Bitcoin’s price action from the start of the year to now eerily resembles the BTC bull and bear market of 2014-2015, marked by a parabolic rally, a fast breakdown, potentially recovery, then a series of moves lower. This fractal playing out in full will see Bitcoin hit the $5,000 range by the start of 2020.
Since everyone is now a fractal expert, I thought I'd join the party pic.twitter.com/h9tATUqfX9
— MrChief (@HaloCrypto) November 28, 2019
Related Reading: Altcoin Returns to ICO Price After 11,100% Run: Bitcoin Dominates Crypto Market
Featured Image from Shutterstock
