Since broke through the $8k barrier earlier this month it has started to consolidate forming a range bound channel. The correction that so many had predicted did not last long and quickly rebounded back to $8k on Sunday. Now analysts are looking towards a higher move to $9k before any measurable pullback occurs.
has done very little over the past 24 hours. It reached an intraday high of $8,060 a few hours ago but has largely been consolidating just below $8k. Since back to currently levels has been relatively quiet but that could all be about to change.
Surge to Monthly Resistance at $9.6K?
Crypto trader Josh Rager has posted a bullish scenario in which breaks out of the pennant to the upside. The continuation of trend could send it all the way up to $9,600, a level it has not tested since May last year.
Condensing price & decreasing volume before another hard push up to follow the uptrend. Support levels posted – break below here and we see at least low $6ks. I feel as if $ can push up over $9k before a major pullback.
Here’s the Bullish scenario for
Condensing price & decreasing volume before another hard push up to follow the uptrend
Support levels posted – break below here and we see at least low $6ks
I feel as if can push up over $9k before a major pullback
— Josh Rager 📈 (@Josh_Rager)
Daily support levels on the downside would be back at around $7,000 or high $6,000s. Sentiment is definitely bullish at the moment and long gone are the days when analysts were expecting to return to $4,000, where it was less than six weeks ago.
Bad has had very little impact over the past week or two. Nothing happened after the hack and there was no market reaction to the from the on the VanEck proposal.
Even CNBC, which has been known to be a counter trade indicator, has reported bullish sentiment in its latest ‘’ edition. Brian Kelly, citing institutional interest and the halving this time next year, said that we are now entering a rally that has previously happened in the run up to every ‘supply cut’ event.
What About a 30% BTC Pullback?
Rager followed his bullish scenario post with a counter theory that is due a 30% pullback;
Yes, eventually. If history repeats, there should be plenty of strong pullbacks on the way to next peak ATH. There were at least nine 30%+ pullbacks from last cycle accumulation & uptrend.
30%+ pullback coming?
Yes, eventually. If history repeats, there should be plenty of strong pullbacks on the way to next peak ATH
There were at least nine 30%+ pullbacks from last cycle accumulation & uptrend
Plenty of buying opportunities ahead, don’t let it shake you
— Josh Rager 📈 (@Josh_Rager)
In this rally so far there has only been a 26% retracement and only on some exchanges so a bigger correction is definitely on the cards. Large pullbacks in a bull market provide opportunities for accumulation and trade entry points, after all, everybody wants to buy low and sell high!
Will break $9k before correcting? Add your thoughts in the comments below.
Images via Shutterstock
Published at Wed, 22 May 2019 10:11:19 +0000
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