Bitcoin bulls should prepare for a price rally toward $ 23,000, according to an independent analyst.
The nickname Twitterati expanding the bullish result after noticing BTC / USD in an accrual-friendly pattern. Entitled “Ascending triangle,” the structure forms when the price forms two lower or higher below a roof-like horizontal resistance level.
Bitcoin trade settlement, as presented by CryptoHamster. Source: BTCUSDT On TradingView.com
The $ 23K Bitcoin Call
Traders interpret the pattern as a bullish continuity indicator. Its formation typically appears as a consolidation after large upside down rallies – a period where the asset is neutralizing its over-thinking status and preparing for another upward leg. Ideally, the cut above the horizontal resistance lasts at the height of the Triangle pattern.
“Now, this ascending triangle is visible to everyone,” said the analyst based on a similar technical description, adding that “if its structure holds, long trade targets would be $ 22k and $ 23k.”
The prediction surfaced at a time when Bitcoin had trouble breaking above the $ 19,500-19,600. After the cryptocurrency rallied nearly 100 percent in eight weeks, traders with a short-term bearish outlook sold their holdings in that area to secure a decent profit. Meanwhile, fresh upside down bids also fell.
Many resilient sentiments took cues from exactly the same factors that helped Bitcoin’s price rally earlier. One of them is the advances associated with the coronavirus vaccine. Forecasts of a drug that could help contain the pandemic and, in turn, reopen economies again usually reduce investor exposure to safe haven assets.
Essentials
Bitcoin reached a shy peak of $ 20,000 ever as mainstream traders and investors flocked to its market to seek protection against inflation caused by the Federal Reserve’s open-ended bond buying program and an ultralow interest rate environment. Vaccine reduces the need for such expansion policies.
The US central bank will provide more information on how it would approach the markets with its emergency lending facilities at around 1400 EST this Wednesday.
Rick Rieder, chief global investment officer for fixed income at BlackRock, believes the Fed would continue to dovish, adding that there would be “more fiscal stimulus” and “more borrowing” – one way or another. the other. Economists at Goldman Sachs are also thinking along the same line.
The prospects of more liquidity coming into the economy would keep the shine off the US dollar and government bond yields. These fundamentals are bullish catalysts for Bitcoin, almost falling in line with the pseudonym analyst’s prediction set – albeit by technical indicators.
Bitcoin was trading at $ 19,385 at 0817 UTC.