BTC is up 32% through February, believes the incredibly precise trader who predicted Bitcoin’s fall to $ 7,000
BTC is up 32% through February, believes the incredibly precise trader who predicted Bitcoin's fall to $ 7,000
After a breathtaking two-week 30 percent rally, Bitcoin has finally started to cool off. For the past two days, the cryptocurrency has moved within a narrow range of $ 350 between the resistance of $ 8,900 and the support of $ 8,550.
While some analysts believe Bitcoin is becoming bearish again, falling back to or even below the $ 7,000 range because it hasn’t been able to break that range yet, an incredibly precise crypto trader remains of the opposite opinion.
Why BTC could soon rise towards $ 11,500: top analyst explains
Few analysts have predicted Bitcoin’s recent price action as accurately as “Dave the Wave”.
The pseudonymous trader had claimed in mid-2019: BTC will drop dozen percent to its low in the mid-$ 6,000 range – which happened months later. Mind you, he made his shocking prediction, while most investors were bullish, expecting $ 20,000 and more.
According to his forecast, Dave said in mid-December that he expected the BTC breakout in early 2020.
And now Dave is back. This time, he says Bitcoin is preparing to break higher than it has already done. He points to the graph below, which shows that BTC is trading in a clear uptrend.
According to his analysis, the price of the cryptocurrency is likely to rise another 32% by mid-February, to $ 11,500 – and that’s only four weeks away.
More strictly measured…. pic.twitter.com/IeS0Q99ze3
— dave the wave (@davthewave) January 15, 2020
To support this prediction, Dave quotes a combination of factors:
- Bitcoin recently broke through a descending channel that has been restricting price action for more than six months, which is a huge win for the bulls.
- Bitcoin’s rebound to $ 11,500 would satisfy a historic chart pattern
- The weekly moving average convergence divergence (MACD) is starting to trend higher again – a signal seen in 2015/2016 when BTC switched from a bear market to a bull market.
Dave’s belief that Bitcoin will soon be above $ 10,000 is confirmed by another pseudonymous trader – FilbFilb, who published the graphic below in October.
The analysis, based among other things on miner’s profitability, predicted Bitcoin’s sudden vertical rise to $ 10,000 and the subsequent decline to the low $ 6,000.
The same chart now indicates that BTC will rise above $ 10,000 in January or February 2020 (ignore the “May 1, 2020” mark).
These data also indicate that the Bitcoin price is going up
It’s not just technical indicators that indicate that Bitcoin’s return to a bullish state is imminent.
At the end of 2019, analysts and executives from across the industry were literally showering them with their crypto predictions for 2020. Interestingly, the consensus was and is overwhelmingly bullish.
Fundstrat Global Advisors, a top market strategy and sector research company based in New York, writes, for example, that BTC is expecting a rally of over 100% next year for three fundamental reasons:
- Bitcoin halving: Bitcoin will experience the so-called “halving” in about four months if the block reward of Bitcoin is halved. This effectively leads to a 50% drop in the leading cryptocurrency’s inflation rate. Analysts (including Fundstrat) are convinced that this should lead to a shortage of supply in the cryptocurrency market, which could push up prices dramatically .
- Geopolitical risk: Many countries in the world are concerned about possible geopolitical conflicts. Fundstrat believes global conflicts could push BTC up in 2020.
- The 2020 presidential election: Unfortunately, Fundstrat didn’t explain why, in your opinion, the upcoming US presidential election could be a blessing for the Bitcoin market.