Bitcoin Price: Defense of $7,000 Could Lead to Thanksgiving Rally

Tony "The Bull" Severino

5 years ago

2 mins read

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Bitcoin price is finally trending upward once again, after weeks of downtrend taking the price of the crypto asset to $6,500 at the low.

Last night, Bitcoin price made another attempt to break back below $7,000 but the move was short-lived as bulls were able to defend the key area. Could the current bounce have some (turkey) legs that extend into the Thanksgiving holiday?

Bulls Defend $7,000, Rebound In Effect or Reversal Forming?

Late last night, Bitcoin price tumbled back to under $7,000 for a brief stop at $6,800 before rebounding back above $7,000 and is now trading above key resistance at $7,500 and climbing.

The quick dip to $6,800 to find support was just what bulls needed to instill some additional confidence, and form the right shoulder of a large inverse head-and-shoulders on Bitcoin’s hourly price charts.

Inverse head and shoulders are chart patterns that typically signal a trend reversal, even if only in the short term. Should the right shoulder complete and the pattern confirm, the target would bring Bitcoin price to as much as $8,100 or higher if bulls can sustain momentum.

Following a break above $7,300, the first-ever cryptocurrency is now back above support turned resistance, and potentially signaling that a rally higher is ahead. Such a rally could take place during the Thanksgiving holiday, – a holiday that two years ago acted as a launchpad for Bitcoin, taking the price of the cryptocurrency from $10,000 to $20,000 at its peak.

Last Thanksgiving, Bitcoin was on sale, after breaking down from support at $6,000 to set its bear market low a month later. If Bitcoin can’t break above $7,300 and sustain it as support, the crypto asset could suffer yet another catastrophic fall much like last November.

Will Bitcoin Price Rally On Holiday FOMO?

A study released earlier this year by data firm SFOX, revealed that holidays often cause FOMO into Bitcoin. It was Thanksgiving 2017 that caused Bitcoin to go parabolic and reach its all-time high, and after Bitcoin bottomed in December 2018, it went into the Christmas and New Years Eve holidays on a rebound.

The study was released just ahead of the Independence Day holiday in America, which acted as an extremely poor example of Bitcoin FOMO on holidays. After late June, Bitcoin’s parabolic rally of 2019 had come to an end and is now trading nearly 50% lower than at the time the study was released.

Still, holidays are a prime time for Bitcoin to rally, as order books are usually thin from traders attending to family feasts and early Black Friday shopping, and because those family feasts can sometimes include dinner-table discussions about finances, and the conversation about buying the dip in Bitcoin could come up. After all, it is cheaper than it was two Thanksgivings ago, and with a potential rally ahead, a quick profitable Bitcoin trade could make for a Merry Christmas in December.

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.