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Many Bitcoin Analysts Call For Rally Beyond $70,000; Here’s Why

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Bitcoin traders and analysts are sticking to their conviction that the cryptocurrency’s price will hit at least $70,000 in the coming sessions.

At the core of their upside outlook lies a classic technical indicator. Dubbed as Ascending Triangle, the pattern forms when an asset forms two or more rising troughs and almost equal highs in conjugation. The trendlines connecting these dots converge as the price rises, making it appear like a rising triangle.

Bitcoin Bullish Structure? Check.

Bitcoin ticks almost all boxes when it comes to confirming that it is forming an Ascending Triangle. The cryptocurrency’s two-month-old structure prompted it to test levels around $60,000 repeatedly as resistance. Meanwhile, the price kept rising while treating a rising trendline as support. The only link missing is a breakout to the upside.

“When this breaks above $60,000 with conviction, don’t stand in the way,” one analyst proclaimed on Twitter.

Bitcoin bullish triangle structure, as shared by CryptoHornHairs. Source: BTCUSD on TradingView.com

Bitcoin bullish triangle structure, as shared by CryptoHornHairs. Source: BTCUSD on TradingView.com

The bullish triangle breakouts tend to shift the asset’s upside target at a level above the widest distance between the upper and lower trendline. Applying these theoretical definitions on the Bitcoin charts ensure that it would break above $75,000 in the coming sessions. $70,000 remains a psychological resistance target.

Bitcoin analyst Josh Olszewicz confirmed that a breakout move would push the bitcoin price towards $75,000. Thereon, the cryptocurrency would start consolidating in the $70,000-75,000 area. Meanwhile, another analyst — albeit a pseudonymous one — provides fundamental catalysts that could make the explosive bullish move happen.

Coinbase IPO FOMO

Pentoshi, a widely-followed Twitter account, noted that the upcoming direct listing of Coinbase, a US-based cryptocurrency exchange, on Nasdaq, would serve as a tailwind to technically bullish structures. In his opinion, Bitcoin is consolidating inside a Symmetrical Triangle — another technical indicator professing an asset’s bullish continuation bias.

Bitcoin symmetrical triangle structure. Source: BTCUSD on TradingView.com

Bitcoin symmetrical triangle structure. Source: BTCUSD on TradingView.com

“CB IPO is now 6 days out. BTC supply is at new all-time lows. Yet, no announcements of new holdings,” the independent analyst wrote.

“I feel a lot of companies could/will announce around that time to capitalize off the momentum. Combined with hype at Influx of new money that CB [custody], moon,” he added.

But technical indicators are not always accurate. A study conducted by Samurai Trading Academy shows that Ascending Triangles have a success rate of 72.77 percent. Meanwhile, the possibility that bitcoin breaks above its symmetrical triangle structure stand further lower at 54.87 percent (considering it also appears like a bullish pennant).

Photo by Mark Boss on Unsplash 





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Dogecoin, CryptoCurrency Reddit communities surge as crypto euphoria heats up

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With much of the market fixated on Bitcoin’s (BTC) sudden price correction over the weekend, retail interest in digital assets appears to be on the rise, according to the latest statistics from Reddit.

The r/dogecoin community added 145,859 weekly subscribers, according to Subreddit Stats. The gains are hardly surprising given DOGE’s dramatic rally over the past week. The meme-based cryptocurrency skyrocketed 400% during that period, bringing its yearly returns to an eye-watering 5,000%.

DOGE’s parabolic rally moderated over the weekend, with social media sentiment data from The TIE and Cointelegraph indicating more pain in the short term. That’s because price action is often correlated with social media engagement; a decline in the latter is sometimes a precursor to bearish price action in the near term. 

Meanwhile, the r/CryptoCurrency community, which is devoted to all things digital assets, added 86,838 new subscribers during the week. New community members were welcomed by platinum award recipient “mirza1h” on Sunday. In a subreddit post, miraza1h said:

“Past week has been insane in the crypto world, so naturally things here weren’t like they normally are. Your curious posts/comments may have been ignored a bit. In the weekend things are a bit more chill, so feel free to ask us anything you want.

The user also introduced new subreddit followers to Moon, the native token of the r/CryptoCurrency community.

Much like DOGE, the overall cryptocurrency market limped into Sunday’s session, having declined by a cumulative $386 billion, according to CoinMarketCap. The digital-asset market cap briefly fell below $1.9 trillion before recovering to around $2 trillion.

Massive shakeouts are nothing new for seasoned cryptocurrency investors. Even during bull markets, declines of 20% or more are fairly common, especially after major rallies. Speculation about an abrupt decline in Bitcoin’s hash power and the possibility of U.S. regulatory action against crypto-friendly banks may have contributed to the decline on Sunday.

Even with the latest decline, the cryptocurrency market is still double the size it was in January when it first crossed the $1 trillion milestone.