Since Bitcoin 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.
Bitcoin 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 Sunday’s pump back to currently levels BTC 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 BTC 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. I feel as if $BTC can push up over $9k before a major pullback.”
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 BTC to return to $4,000, where it was less than six weeks ago.
Bad news has had very little impact over the past week or two. Nothing happened after the Binance hack and there was no market reaction to the anticipated delay from the SEC on the VanEck ETF proposal.
Even CNBC, which has been known to be a counter trade indicator, has reported bullish sentiment in its latest ‘Fast Money’ edition. Brian Kelly, citing institutional interest and the Bitcoin 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 Bitcoin 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.”
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 healthy opportunities for accumulation and trade entry points, after all, everybody wants to buy low and sell high!