Some four days ago, a Bitcoin analyst going by “Velvet” posted the chart below. In it is depicted BTC’s price action for the past 18 months, a Fibonacci Retracement of the $3,150 to $13,800 move, two trendlines, a moving average, and a vertical date marker for December the 22nd.
Presented with no comment: pic.twitter.com/hRrDaqM2IQ
— MAXi. (@888Velvet) December 19, 2019
Velvet presented the chart with “no comment,” leaving many bewildered as to what he was implying by posting this Bitcoin chart.
Related Reading: XRP is Down 95% from Its 2018 Peak; What’s Next for the Embattled Crypto?
Though on Sunday and today, we got our answer: yesterday morning, December 22nd, BTC finally broke out, surging higher from the $7,100 base it was building for days on end. As of the time of writing this, the cryptocurrency has topped $7,600, up some 7% in the past 24 hours.
The updated version of this chart shows Bitcoin breaking cleaning through the upper trend line, marked in green, on the vertical date marker. This move has also allowed BTC to hold the aforementioned moving average and the 0.618 Fibonacci Retracement.
In other words, Velvet called the recent reversal to the date, which is rather difficult in such an unpredictable and volatile market as cryptocurrency. Here’s more on what he expects for Bitcoin to do next.
Related Reading: Why Bitcoin Price Just Got a Major Boost For the Next Rally
Bitcoin to Hit $20,000 by March?
Earlier this week, Velvet posted the below analysis, which stated that yesterday’s weekly close was very important, as Bitcoin bulls need to hold the trend line depicted in red. 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 just closed 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
Although this may seem highly optimistic, there are some signs that this is a bona fide possibility.
Thomas Thornton, a hedge fund services specialist, recently noted 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.
Related Reading: Why Bitcoin Price Could Drop 20% to $5,500 Before Rebounding
Featured Image from Shutterstock
