Bitcoin Price Analysis: Time For Correction or Time for $12,000?
So far, so good: Bitcoin has been breaking highs over the past two days, currently trading just below $11,000.
As stated here before, Bitcoin’s price movements are very unexpected. There was no analyst out there who could have declared that Bitcoin’s bottom was indeed $3,000 back in December 2018. And no analyst could have expected that before mid-2019, the price of the primary cryptocurrency would return to a 5-digit number.
However, there is always a bearish aspect to the story. As we have learned from its short history, when Bitcoin goes parabolic, we can expect to see a sharp move to the other side.
To wit, after losing more than 80% of its value during 2018, Bitcoin saw a series of price spikes in the first few months of 2019.
Two Directions, Two Thoughts
As of press time, Bitcoin looks destined to continue higher. However, the bulls wouldn’t regret seeing a healthy correction soon.
As can be seen on the daily chart, the bullish move from $7,500 to the recent 2019 high of $11,200 hasn’t led to a significant correction.
In my opinion, there are two scenarios right now: The first is that Bitcoin has formed a double-top pattern around the high of $11,200 (see the 4-hour chart). A double top is a bearish formation which leads to a necessary correction. This is supported by the following two significant statistics that have reached resistance levels: Bitcoin’s market cap ($200B) and BTC dominance (60%). The second scenario consists of breaking above the current high, followed by a decent amount of volume, to continue this impressive bull run.
Do you think bitcoin will continue going higher?
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