Here’s Why Analyst is Bullish on Bitcoin for the Week
Bitcoin price is not showing any signs of recovery as it now trades below $8,500. Since hitting $10,500 on Oct. 26 following Chinese President Xi Jinping promoting blockchain technology, BTC price has been on a constant decline.
At the time of writing, BTC/USD has been trading at $8,458 with 24 hours loss of 0.11%, as per Coincodex. Trading volume meanwhile has dropped drastically with only $175 million worth of BTC changing hands-on top ten exchanges with real volume in the past 24 hours.
However, Mondays have been the “best candidate” to buy a low, shares analyst Joel but not the only one.
The start of the week might be slow, but usually, we make it upwards before the week is over, according to Joe.
The analyst shared a bullish BTC week thread on Twitter talking about how when the leading cryptocurrency registered a 10% gain in a day followed by a positive day and a positive 7-day sequence, the Bitcoin market gets a positive 30-day return 80% of the time. In the case of 12% gains, we get a positive 30-day return 100% of the time.
$BTC Bullish week thread. 1/4
Here is why i'm BULLISH for the week.
When we get a 10%+ day
+Followed by a positive day
+AND a positive 7-day,
= We get a positive 30-Day return 80% of the time.
For 12%+, we get 100%. pic.twitter.com/l3spl1e9Q3
— Joel (@JofDom) November 18, 2019
The analyst explains how on Oct 25, BTC registered a 16% increase in price climbing to $8,668 on BitMEX, a level we are currently under. This surge followed the next day when we jumped a 20% surge that took us to $10,500.
Joe points out that these gains were then followed by a positive 7 days. As such, he sees the price to close above $8,670 on Nov 24, which is 30 days later that will be the end of this week.
These calculations and “probabilities” have him planning to buy the dips in the week in expectation of seeing a close above $8,668 next weekend when he will go long on BTC. But at the same time, he cautions that as the bias is built on numbers, if Bitcoin doesn’t follow the route “risk has to be managed properly.”
But just like any other time, in the short term, the market is divided into bears and bulls. The majority of the CT however, is still expecting Bitcoin to drop around $8,200. Trader Livercoin is short on BTC in anticipation of a pullback at $8,348 level.
Another trader Credible Crypto sees Bitcoin testing the $8,000-$8,300 range which he says will be “the last chance to get out of longs/short before we clear the lows at 7.2k.”