Despite Price Stalling In $9,000s Analysts Say Bitcoin Is Heading Higher
Once again Bitcoin has found itself stuck. Over the weekend, the cryptocurrency failed to move in any notable fashion, flatlining in the low-$9,000s as buyers and sellers duke it out for dominance.
It is important to note out that earlier Monday, Bitcoin spiked to $9,600 — the highest price in literal months — though the price quickly reverted back to $9,400 as the market normalized. The spike correlated with a strong drop in the price of Chinese stocks due to coronavirus fears.
Altcoins, on the other hand, saw an extremely strong weekend, with Ethereum surging to $190 and XRP passing $0.25, setting multi-month highs as BTC flatlines and tries to establish a direction.
Despite the non-action in the price of Bitcoin, analysts say that another leg higher is right on the horizon.
Litecoin Could Lead Prices Higher
One of the top-performing cryptocurrencies in the past few days has been Litecoin, the popular Bitcoin fork. LTC is up 21% in the past seven days, while BTC has posted a relatively mild 5% performance.
This discrepancy may seem irrelevant, but, it is important to note that throughout the past few years, price action in Litecoin has led the rest of the cryptocurrency market, namely Bitcoin.
In 2019, LTC started a massive rally that brought it hundreds of percent higher as the rest of the market posted mild gains. But, after a long enough time, Bitcoin and its ilk began to trace Litecoin.
Should this pattern hold true today, Litecoin’s latest breakout may imply that the rest of the cryptocurrency market is about to zing even higher.
What if Litecoin is leading Bitcoin again, like it did last year? pic.twitter.com/VHB3RLm5rd
— Loma (@LomahCrypto) February 1, 2020
Technical Analysts Claim Bitcoin Rally Not Over Yet
On Sunday, prominent analyst Filb Filb — the trader who in October 2019 called Bitcoin’s surge to $10,000 and subsequent decline to the $6,000s — posted the below chart to his Telegram channel for crypto analysis.
He wrote that these charts paint a “pretty bullish outlook” because the “volume indicators are good,” not to mention the “moving averages are trending up.” He added that his monthly chart coupled with his proprietary indicator is printing a buy signal, “which in the past has meant a big upside move.”
He wrote in a previous analysis that he expects for the cryptocurrency to be trading well above $10,000 around the time of the halving:
“Overall, Bitcoin is exactly where [I] anticipated; slowly grinding up towards previous resistance… I’m very much of the opinion that Bitcoin will reach to at least $12,500 level before the halving.”
Also, Fundstrat Global Advisors, a New York-based markets research firm, recently noted that Bitcoin’s latest surge higher has allowed it to cross above the 200-day moving average. Firm co-founder Tom Lee wrote that whenever the price of Bitcoin is about the 200-day moving average, the six-month forward win rate for the cryptocurrency “jumps to 80%,” “essentially [meaning BTC is] ‘re-entering’ a bull market.”
Not to mention, Mike Novogratz, a Wall Streeter-turned-Bitcoin bull, recently said that the fundamentals of Bitcoin remain exceedingly strong. Per previous reports from Blockonomi, the noted industry executive explained that he remains bullish on the leading cryptocurrency for three main reasons:
- The debasement of fiat money: Novogratz mentioned that the copious amount of liquidity in capital markets, encouraged by low interest rates the world over, and the seeming debasement of fiat money should help Bitcoin, gold too.
- Digital gold: Novogratz suggested that Bitcoin’s maturing into a form of digital gold, a digital store of value investment, could support prices moving forward.
- Increasing levels of infrastructure: The investor said that the increasing level of infrastructure in the crypto industry, which he dubbed the “plumbing” of the industry, could help boost Bitcoin.
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OhNoCryptocurrency via https://www.ohnocrypto.com/ @Nick Chong, @Khareem Sudlow
