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.
Just three hours ago, Bitcoin’s latest block reward halving finally came to pass.
Aside from some short-term volatility — rallies and crashes of a few percentage points here and there — the cryptocurrency barely budged off the news from a macro perspective. Case in point: the cryptocurrency now trades at $8,600 as of the time of this article’s writing, about where it was just 24 hours ago.
Yet analysts are starting to become convinced that a return to the highs is possible in the coming days. One top trader, in fact, argued that he sees a world in which Bitcoin “pumps” towards $10,000 in the coming days.
Bitcoin Is Preparing to Rocket Even Higher
A top analyst, one that called that XRP would fall to $0.11-$0.13 early this year when markets were pumping, recently shared the image below.
Shown is BitMEX’s Bitcoin futures contract details, with the notable part of the image being the -0.2085% predicted funding rate in 16 hours. This means that should the predicted rate remain accurate, short positions will be paying longs 0.2085% every eight hours to maintain their positions.
Although 0.2085% may not seem like much, that fee can stack up once you involve leverage.
With that in mind, the trader shared: “Don’t be surprised if you see a quick pump and dump to $10,000… Crazy Bitcoin funding predicted rate.”
Such high funding rate values are often seen near the reversals of market trends, like how the actual funding rate crossed below the ~0.15% extreme threshold during BTC’s crash in March.
This call for $10,000 was somewhat echoed by “PlanB” — a pseudonymous quantitative analyst in the space — during a recent live stream.
He argued that Bitcoin’s chart is currently looking like a textbook “Bart” formation, in reference to the common price action in Bitcoin markets where prices dump, then rally vertically to pre-crash levels in the span of a few days.
Long-Term Bullish
The long-term outlook is purportedly bullish as well, one trader explained.
The trader in question is the same one who said on March 13th, on the day that Bitcoin hit $3,700, that he thinks a bottom was in.
Backing this optimism, he pointed to five market trends that have transpired:
- Bitcoin’s recent drop was a “big shakeout” that has largely been absorbed by buyers, which have recovered BTC to $8,700
- BTC retested and held key moving averages, such as the 50-week moving average and the 200-day moving average
- Bitcoin’s price action is “arguably within wave 3,” which was a comment made in reference to his bullish Elliot Wave outlook
- A “running flat” bullish pattern could develop
- The drop allowed BTC to bounce off a historically important trendline.
Photo by Jörg Angeli on Unsplash
