We’re back again with a more technically-focused analysis of the recent Bitcoin surge in price, and a few predictions on the direction the price will take in the future. Our Director of Research, Alex Sovpel, found the following points to be especially relevant, identifying Bitcoin’s next price target at $11,500:
On Bitcoin’s price surge: Demand for Bitcoin is almost 2.0x higher than supply on major exchanges and trade volumes are up by 221% month-over-month.
These two factors indicate that traders have been buying into Bitcoin at higher and higher prices, and that buyers have greater influence over the price due to the demand/supply imbalance on major exchanges. This creates a high probability of price appreciation for the next month.
On its future movement: Technical analysis shows numerous strong signals for an upward trend.
As Bitcoin has broken through the two psychologically important resistance levels at $6,000 and $7,500, this has triggered noticeable amounts of stop-losses and margin calls, intensifying the upward trend.
A short-term correction downwards is highly probable at this point because the market price has deviated significantly from its central tendency (its mean value).
Importantly, there is a strong pattern of an ascending trend channel on the Bitcoin chart. We believe that over the next month Bitcoin price will be increasing within the bounds of this linear channel. The upper trendline of this channel implies that the next target is at $11,500. A Fibonacci retracement also places the next price target at $11,500.
The Takeaway: We believe that Bitcoin is primed for a 62% appreciation over the next month, with an identified price target of $11,500.
Also, take a look at a more detailed analysis, supplemented by a trading strategy and signal, published on TradingView : TOP-3 SIGNALS showing Bitcoin will GO UP to $11,500.
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