After a brutal start to the week that saw Bitcoin crash from $10,000 to as low as $8,500, the crypto market has finally started to show signs of consolidation.
According to a well-known crypto trader who has predicted recent price action quite well, this consolidation is a potential sign that Bitcoin will soon re-enter the $9,000s. Such a move, other analysts have said, will confirm that BTC will continue higher, likely moving past its local high at $10,500 prior to the halving.
Meet the Trader Who Called Bitcoin’s January Price Action
Bitcoin’s strong surge to kick off 2020 has caught many traders on the back foot. Case in point: each leg higher in the price of BTC has been marked by dozens of millions of dollars worth of short liquidations on margin trading platforms like BitMEX.
While the majority seem to have been caught off guard, one trader called Bitcoin’s emerging uptrend: Financial Survivalism, also known as Sawcruhteez.
Just a day after New Year’s Day, the prominent trader claimed that Bitcoin was starting to show signs it was forming a textbook Wyckoff Spring pattern. The pattern, Sawcruhteez suggested, implied BTC was going to hit $9,200 in the middle of January.
Now, Sawcruhteez is hinting that BTC may soon return higher past $9,000 after this week’s retracement.
Sawcruhteez is Leaning Bullish
In an analysis shared on Saturday morning, Sawcruhteez remarked that the 30-minute Bitcoin chart of the price action over the past five days is “starting to show some striking similarities to what we saw on the four-hour chart in December.”
For those who missed the memo, the price action in December saw Bitcoin bottom in a way depicted in the studies of technical analysis legend Richard Wyckoff (the aforementioned Wyckoff Spring).
What Sawcruhteez is suggesting is that BTC has over the past few days printed a price pattern similar to that seen in December, meaning that there’s a likelihood Bitcoin is bottoming and may soon explode higher past $9,000.
— Tyler D. Coates (@Sawcruhteez) February 29, 2020
He isn’t the only one suggesting that Bitcoin has the potential to bottom around $8,500 to kick-start the next phase of the bull run.
Per previous reports from NewsBTC, LightCrypto, a prominent cryptocurrency market commentator, laid out a case for why BTC may be bottoming at $8,500 to $8,600, near 20% from the $10,500 high.
The case included the fact that Bitcoin has held up as gold has fallen under $1,600, the seeming impending rate cuts from the Federal Reserve and other central banks, the existence of the impending block reward halving in May 2020, and the fiscal policies being implemented by the world’s governments to respond to flagging economies.
Featured Image from Shutterstock