Over the past few days, Bitcoin (BTC) has found itself in a lull. This is for good reason; after a 42% surge in under 24 hours, it makes sense for the cryptocurrency market to want to take a breather.
Despite the fact that it makes sense for Bitcoin to see a period of calm and a slight retracement after a monumental surge higher, some analysts have flipped bearish, believe it or not.
In fact, as reported by this outlet previously, one trader expects for BTC to enter the high-$6,000s or low-$7,000s in the coming weeks. The idea here is that that region is where there exists a confluence of technical levels: the 0.5 Fibonacci Retracement of the $3,200 to $14,000 move, the bottom of a descending channel, amongst other important levels.
But, with the candle for the month of October recently closing relatively strong above $9,000, some say it is only a matter of time before the crypto market continues to mount higher, potentially to kickstart the second phase of this ongoing bull cycle.
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Bulls Readying to Push Bitcoin Higher
Trader HornHairs has noted that he “likes the chance we hit $14,000 before $7,000.” But why, exactly, does the trader expect Bitcoin to surge higher by 55% from the current price of $9,200 over the alternative scenario of a collapse to $7,000.
Well, it has much to do with where Bitcoin has just bounced from and where it closed October. He remarked in a recent tweet that with Bitcoin bouncing strong and holding above the one-month bullish breaker, the 0.618 Fibonacci Retracement of the entire cycle, the Point of Control as defined by the volume profile, and the yearly pivot, BTC is leaning rather bullish.
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$BTC Monthly confluence
+1M bullish breaker
+.618 retracement
+Volume Profile HVN/PoC
+Yearly Pivot
+Inside bar fakeoutI like the chances we hit $14,000 before $7,000. pic.twitter.com/0l1VlDAmA0
— HornHairs 🌊 (@CryptoHornHairs) October 31, 2019
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Fundamentals Support Crypto Growth
The fundamentals support the growth of Bitcoin.
On Wednesday, Jerome Powell, the Chairman of the Federal Reserve, revealed that the Federal Open Market Committee has lowered its benchmark funds rate by 0.25% (25 basis points) 5o a range of 1.5% to 1.75%. This is the Federal Reserve’s third cut this year.
“Bitcoin’s becoming increasingly a macrohedge for investors against things that could go wrong. Rate cuts are adding liquidity. Liquidity is pushing money into all these risk assets and also hedges, which is helping Bitcoin.”
Aside from fundamentals, we’ve seen the blockchain pass a key milestone. As pointed out by Yassine Elmandjra, a crypto asset analyst at markets research/fund management firm ARK Invest, the Bitcoin network has now seen $1 billion worth of transaction fees paid. Cumulative fee revenue may not mean much in and of itself, so here’s a way to put it that may put this statistic into perspective:
Tuur Demeester, the founding partner of Adamant Capital, framed this statistic best when he wrote on Twitter the other day that this effectively means that “$1B funding the world’s strongest firewall.
Related Reading: Bullish for Bitcoin? Analyst Warns of Growing Motives for Global De-Dollarisation
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