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During the holiday season, Bitcoin (BTC) stalled at a low of $ 7,000 and is stuck between strong macro support in the middle of $ 6,000 and more appropriate resistance at a high of $ 7,000, where the cryptocurrency has been repeatedly rejected.
While some say these rejections point to an impending return to the $ 6,000 and $ 5,000, growing sentiment shows that the leading cryptocurrency could be traded in the $ 8,000 and $ 9,000 in the coming weeks.
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To make this statement more credible, the assumption that the BTC will trade around $ 9,000 this month has been supported by a number of technical analyzes.
Will Bitcoin exceed the 9,000 mark by the end of January?
Crypto trader Velvet released an analysis on Friday that Bitcoin is currently in the middle of a textbook-like Wyckoff accumulation pattern: a sharp decline, a recovery, and a false breakout constrained by resistance, a decrease to a new low lower than to put the original, failed attempts to break past resistance, then a final shakeout before rising back to pre-declining levels.
Bitcoin is currently in the final cleanup phase of the pattern, as suggested by Velvet. If this pattern of technical analysis develops exactly as the studies by the well-known technician Richard Wyckoff show, BTC is likely to break the $ 9,000 mark by the end of January and then possibly even $ 10,000.
Not only the analysis suggests bullish momentum
Velvet’s claims that themselves Bitcoin Being in the middle of an extensive Wyckoff spring / accumulation pattern isn’t the only thing that suggests an immediate return to $ 9,000 or even higher.
As mentioned in previous articles: The Bitcoin price has exploded higher in the first three weeks of January each year in the past three years, writes trader SalsaTekila. In 2017, BTC rose 21.9% in the first seven days of the year, 2018 by 24.3% and last year by 11.8%. The same pattern could be for Bitcoin again mean that the value will increase towards $ 8,000 and $ 9,000.
Su Zhu, CEO of Forex and Crypto Fund “Three Arrows Capital”, also believes that Bitcoin’s price looks rather bullish in 2020. The prominent commentator refers in particular to his analysis of the BTC / USDT trading pairs, their premiums on the BTC / USD markets and the general price action. This shows that there are “clear signs of accumulation and a return of money to risk”.
Text credit: newsbtc
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