Bitcoin (BTC) has found itself in the midst of a heavy lull; as of the time of writing this, the leading cryptocurrency is down 1% in the past 24 hours. This effective non-action has been persisting for days, with the BTC price having been stuck between $9,000 and $9,400 for the past two weeks.
While this lethargic price action has made some analysts suggest that a price drop is right on the horizon, Bitcoin may be coiling up for another leg upward. In fact, a leading analyst has shown that the cryptocurrency’s recent price action has validated a bullish chart pattern which implies another surge to the upside.
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Why Bitcoin Could Quickly Hit $11,600
Josh Olszewicz, Brave New Coin crypto analyst, recently posted a short but sweet analyst. As can be seen below, the popular trader noted that Bitcoin’s current chart is looking like a “High and Tight Flag,” which is a textbook chart pattern popularized by technical analysis guru Thomas Bulkowski. This specific technical flag is marked by a dramatic uptrend leading into the flag, a period of consolidation, then a move out of that flag and to the upside.
Olszewicz noted that if the pattern plays out in full, Bitcoin could reach as high as $11,600 — 25% higher than the current price of $9,200 — in the coming weeks.
1D $BTC
high n' tight flag
crazy, probably, but i've seen crazier pic.twitter.com/zRIbzdwwk4
— Josh Olszewicz (@CarpeNoctom) November 8, 2019
Olszewicz’s chart implies a fast and hard move up to $11,500, which many would say is improbable, but such a move really wouldn’t be that crazy.
As readers likely remember, the end of October saw Bitcoin shoot higher by 42% in a single day, the biggest surge of its kind since 2011 and the fourth-largest price gain in BTC’s short history. Of course, two vertical moves are unlikely in such short succession, but the last move shows that it isn’t impossible.
Related Reading: Square’s Cash App Sold $150M Worth of Bitcoin in Q3: 250% YoY Growth
What Side are the Technicals On?
With this in mind, do other technical factors support the idea that Bitcoin will soon hit $11,600?
Yes, according to a number of analysts. First off, Bitcoin recently filled a bearish CME price gap that existed in the high-$8,000s.
Per previous reports from NewsBTC, analysts think that this fill imbues BTC with the ability to mount higher from here. Popular technical analyst “Escobar,” for instance, argued earlier this month that before Bitcoin can continue its bullish advances, it will need to fill the gap. Prominent on-chain analyst Willy Woo echoed this sentiment, writing in response to a question about the gap:
“BTC has a tendency to fill volume profile gaps and especially gaps in the CME. We still have time to burn before the rocket ship takes off, so a high chance to do that while the price wanders sideways in consolidation.”
To add to the bullish confluence of analyses, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.
And, to put a cherry on the cryptocurrency cake, the cryptocurrency closed the month of October strong, with Bitcoin holding above the one-month bullish breaker, the 0.618 Fibonacci Retracement of the entire cycle, the Point of Control as defined by the volume profile, and the yearly pivot.
Related Reading: Bloomberg Analyst Explains Why Bitcoin Price is “Caged” by $8,000 to $12,000 Range
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