Well-known bitcoin trader Jacob Canfield emphasizes that “many sales” are bought up in a short time frame – and this suggests that a relief rally is likely in the short term.
Soil-like structure for Bitcoin
According to Ledger Status analysts, the monthly bitcoin chart with the 20 simple moving average (SMA) indicator is currently showing signs of bottoming out.
Since the technical indicators point to a short-term accumulation period, Tether (USDT) also shows bonuses against Bitcoin. If the USDT / BTC pair is traded at a higher price than on the Fiat exchanges, this usually indicates that investors are accumulating.
“Three Arrows Capital” CE Su Zhu:
“The BTC / USDT premiums and price movements show clear signs of accumulation and the return of money to risk. I wouldn’t be surprised to see 9K + before the end of Jan. ”
Analysts are expecting a relief rally in the near future as the signals of short-term bottoming also coincide with Bitcoin’s monthly close.
Bitcoin’s monthly candle will close in three days, which is likely to be the seventh lower high candle since early 2019. While Bitcoin is technically a bearish trend, a relief rally is likely as BTC looks at a critical point on December 31st.
Where are the analysts looking?
DonAlt, a cryptocurrency technical analyst, believes Bitcoin could retest the peak of the current range between $ 6,700 and $ 7,900:
“Still on track, looks like we’re going to peak. Long Squeeze in Short Squeeze is the game in the second half of 2019, no reason to expect that to change. ”
However, traders are not considering that the next economic recovery will go much further than the range, as the $ 7,900 level has shown strong resistance since late November.
It’s too early to say whether Bitcoin’s macro trend is optimistic, given that BTC and the rest of the cryptocurrency market haven’t shown strong signs of a complete reversal.
Technical analysts predict a short recovery rally due to absorption of low-pressure selling pressure and BTC’s approaching month-end.
Until the block reward halved in May 2020, there were no major catalysts for Bitcoin, and even then, historically, halving did not have a big impact on Bitcoin price until 6 to 12 months later.