Bitcoin Makes a Sharp Reversal After Dropping to $9,600; What’s Next For BTC Price?
- Bitcoin makes a “monster daily close” backed by loads of volume which is “bullish”
- Historically, this pullback could take us to an all-time high of $24,000
In the last few days, Bitcoin has been on a rollercoaster. First, we made a new 2019 high at $13,900, only to take a drop and keep on falling until we went down to $10,300. But we didn’t stop here, yesterday, we went to almost $9,600 level.
This had the crypto analysts and traders calling for more drop to as low as $8,400.
And just as we thought that a deeper drop would be coming, Bitcoin made a monster reversal.
The leading cryptocurrency simply works at its own pace.
Yesterday, we made, what analyst Joe McCann says a “monster daily close” backed by loads of volume. BTC closed above the 200 DMA and a “big hammer candle” posted after the shorts closed their positions below $10,000.
This according to McCann is “bullish.”
Today, Bitcoin’s highest point has been $11,574 while currently BTC/USD trades at $11,219 with 24 hours gains of 10.76 percent.
Reasons why bullish $BTC despite the blow-off top:
1. Big buyers out there
2. Retail not yet participating
3. Institutional on-ramps about to come online
4. Macro narratives catching on
5. Real LT positive macro backdrop
6. Miners hoarding on the way up
7. Halving countdown
— Alex Krüger (@krugermacro) July 3, 2019
Bitcoin to Smash through $20,000 This Time?
So, how exactly July is going to perform?
According to analyst Timothy Peterson, not really happening as he has “modest expectations” for any substantial price increase not just in July but over the remainder of the summer.
Per the Bitcoin returns by month chart, May usually shines with solid returns as we did this time as well. July registers positive greens as well but not as much as of May month. And the majority of the time, July haven’t performed better than June.
However, solid gains could still be ahead.
Bitcoin’s plunge to $9,614 from last month’s high of $13,900 resulted in registering the 30 percent pullback we see after big price spikes.
Previously reported, crypto trader and investor Josh Rager had pointed out, how during the last bull cycle, we registered nine such pullbacks of an average 30 percent. These corrections then led to a jump of 153 percent in BTC price.
This time, the red we saw in the last few days has been that pullback which leads to consolidation only to be followed by another monster rally before we see the next big pullback.
“History says that price consolidates followed by an average gain of 153% before the next big pullback,” said Rager.
By this calculation, this rally could take BTC price as high as $24,000.
The exact figure might not be this but looks like this time we are finally breaking through the all-time high of $20,000 and climb to a new peak.
This means, “there are great rewards for buying pullbacks in a bull market.”