Bitcoin saw quite the bout of volatility on Wednesday. Early in the morning, the cryptocurrency tanked, falling as low as $6,450 in a strong move lower, before rebounding to the upside.
By the end of the day on Wednesday, the price of BTC had rallied as high as $7,300, surging by over 10% from its local bottom in the $6,400s on the back of seeming short covers and long-term investors buying the crypto dip.
Related Reading: Bitcoin Jumps 10%, PlusToken Moves $100m of Ethereum; Can it End the Rally?
Although it may be too early to tell whether or not this is a fully-fledged macro reversal, one prominent trader, who called the drop in November to the $6,000s, suggests that Bitcoin has a good likelihood of reaching $20,000.
Here’s more on that.
Could Bitcoin Top $20,000 By March?
Bitcoin’s latest bounce higher has infused bulls with a fresh dose of hope, culminating in positive analyses that imply BTC’s reversal rally is just starting.
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One such analysis was posted by Velvet, a popular cryptocurrency trader. They noted that “this week[‘s close]” for BTC is “very important,” noting that the key thing Bitcoin will need to do by Sunday’s close is “holding the” trend line, seen in red in the chart below.
For reference, the trend line in question, which always ended up in bear markets when BTC crossed below it, currently sits in the high-$6,000s, which BTC is currently above.
If Bitcoin rides that level, Velvet remarked that Bitcoin “could see $20,000 by March,” referencing the fact that prior to previous halvings, BTC always surged, rallying higher on the expectation that a negative supply shock would hit the market.
Real talk: This week is very important!
The only thing that matters now is holding the trend (red line)! (Current UP)
Every time we lost it, we ended up in a BEAR market! Only this time.. the market will crash!
👉 If we HOLD it we could see 20K by march pic.twitter.com/qrmAnu6weO
— MAXi. (@888Velvet) December 18, 2019
Velvet’s optimistic analysis comes hot on the heels of an observation by Thomas Thornton, a hedge fund services specialist and market analyst that Bitcoin’s chart on Bloomberg recently printed a “buy 13” candle, according to the TD Sequential Combo indicator.
13 candles, the TD Sequential suggests, are indicative of impending price reversals. That’s not to mention that such candles were seen when Bitcoin hit $20,000 in December 2017 and when BTC cratered to $3,150 on December 14th last year.
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Bearish Factors Remain Potent
Per previous reports from NewsBTC, the PlusToken cryptocurrency scam, which managed to procure billions worth of digital assets over its year or so in existence, has slowly been liquidating its proceeds on the open market, resulting in continual, excessive selling pressure.
There’s also fears that Bitcoin miners are selling their mined cryptocurrencies due to the fact that many miners are running unprofitable ventures.
Related Reading: XRP Price Ready to See Strong Move; What Are Analysts Thinking?
Featured Image from Shutterstock
