Bitcoin could skyrocket 50% to fill the $ 11,855 CME gap in the short-term
Over the past 12 hours, Bitcoin has bounced back to $ 8,000 decisively, approaching the $ 8300 area before returning to its current price. With this latest move, along with fundamental developments, analysts are starting to become quite optimistic towards the cryptocurrency market.
Bitcoin bounced off $ 7,700 when the bulls regained momentum
Analysts are currently noticing that one factor could mean Bitcoin will gain some huge profits in the near future.
Currently, Bitcoin is trading up about 4% to its current price of $ 8170, marking a notable increase from its daily low of $ 7,700. This is a low that was set yesterday when the bears tried to create selling pressure sufficient to force BTC to erase all recent profits.
Source: Trading View
Many analysts have speculated that this recent rally is fueling by tensions in the Middle East when Bitcoin is considered a safe asset. Although these tensions have shown signs of escalating, the momentum of BTC’s rally seems to be still strong.
Well-known analyst UB believes that in the near future, BTC can retest its recent high of around $ 8,400, a break above this level is likely to mark the beginning of the next major uptrend.
$BTC – Closed my short from $8,313 at $7,950s and flipped long.
I don’t believe a retest of ~$8300s is out of the question.
— UB (@CryptoUB) January 10, 2020
Will CME Gap stir up the next Parabol rally?
In all futures, analysts look for gaps created in the CME futures chart as a signal of where the asset is heading, because statistically, these gaps are almost always filled.
The same is true for Bitcoin, which currently has an open gap at $ 11,855. Analyst Josh Rager noted that BTC might soon move to fill this gap.
$BTC – your latest Bitcoin gap update
Price has yet to make its way back down to $7,615 & has bounced at support
But wait, looks like the $11,855 gap remains unexplored from August ’19
As all CME gap fanatics pray that price doesn’t fill the $11k gap before the local gap pic.twitter.com/UOeTQe6pcj
— Josh Rager ? (@Josh_Rager) January 10, 2020
If BTC moves to fill its local void at $ 7,615 first, that means the price has broken below the key support of $ 7,700 and could result in another dump.
Anyway, the $ 11,855 gap currently exists around 47% of where Bitcoin is trading is certainly something that could push the bulls in the near future.
It is in the short term, so what about the long term? A leading industry research firm proposed that BTC could end in 2020 with a growth of more than 100%.
Why can Bitcoin increase by 100% in 2020?
Fundstrat Global Advisors, a leading New York-based industry and market research firm, recently released Outlook Crypto 2020 to clients. Although the full report is only available to corporate clients, Bitcoin bull Tom Lee released a portion of the report on Twitter.
Accordingly, Fundstrat believes that Bitcoin has a very high probability of being able to earn 100% by 2020 due to the consolidation of three main factors, which is their bullish argument for BTC: Halving, Geopolitical risk, 2020 Elections.
We published our 2020 Crypto outlook and made the full report available for our clients.
– bottom line: financial markets tend to discount 1-3 months, and maybe 6 months (max). So highest probability is halvening not priced in
— Thomas Lee (@fundstrat) January 10, 2020
Not only does Fundstrat extremely increase Bitcoin price by 2020 and expects the cryptocurrency to increase 100% in the next 12 months.
Earlier, according to a report by AZCoin News, analyst Financial Survivalism recently commented that techniques showing strong uptrend are forming. He offers the following techniques:
- Lucid Stop and Reversal had formed a bullish candle for the first time since July 2019, when BTC was trading well above $ 10,000.
- Average Directional Index on a daily basis has witnessed the first bullish cross since March 2019.
- The one-week RSI for Bitcoin is ready to test 50 if a pass could imply a dramatic price rise.
- The Ichimoku Cloud one day formed a golden cross TK rising.
With these, Bitcoin has the potential to retest its high of $ 20,000 on July 1.
Another indicator that investors need not worry about the recent ups and downs of Bitcoin, please accumulate.
Source: Trading View
Bollinger Bands Width (Bollinger Bands – BBW), when Bitcoin is in a bull cycle, indicating periods of high volatility and accumulation.
We see on the chart that at the time of price consolidation that lasted after the June high, involving the 2015/16 period, came much earlier. That is why the consolidation will most likely be extended until (at least) halving in May 2020. Bitcoin soared from the end of April to the end of June 2019 completely based on favorable fundamentals (news), and that is why it is similarly adapted to fit the 2015/16 model.
Prices are likely to consolidate in the next two quarters, so it is best not to pay attention to the increase/decrease and accumulate more.
Bitcoin price today. Source: Coinmarketcap
Disclaimer: This is not trading advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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