Yesterday, the Bitcoin (BTC) price briefly broke above $8,800 for the second time this week but again faced strong resistance and was knocked back down to around $8,400. It managed to find decent support at the level and has since climbed back above $8,500.
While the move doesn’t seem very positive, it fits in with a pattern that suggests Bitcoin will likely break above $9,000 at some point this week. TradingView trader VaidoVeek offers a simple short-term analysis revealing a line that shows the Bitcoin price has been finding support at increasing higher lows. If the pattern continues, the price should test $9,000 for a third time this week and hopefully breakout above it.
However, considering the restest this past weekend was at a lower high ($8,800) than the previous test, it’s still possible an engulfing triangle pattern could form – driving the Bitcoin price into a sideways trading pattern.
Bitcoin (BTC) Price to $100,000 in 2020?
VaidoVeek’s analysis was in response to a more long-term analysis seeing BTC reaching the significant $100,000 level as soon as 2020. A post from trading signals site TradingShot.com reveals how the Bitcoin price is accelerating upwards in a much shorter time than expected when compared to previous years cycles.
Based on the analysis, which accounts for the shortening times-span, TradingShot foresees Bitcoin breaking the $100,000 level sometime around March next year, just before the ‘halvening event’. However, the pattern is quite random and highly unreliable, as TradingShot notes “Maybe the cycles don’t become longer each time. Maybe they take turns. One is longer, the next is shorter.”
A more conservative look at BTC price movements on a similar chart would suggest Bitcoin hitting $100,000 around 2022.
BTC news and short-term analysis
Bitcoin sentiment seems fairly neutral in the community at the moment with no particular developments coming to light over this weekend. Attention in the media seems to be more focussed on altcoins like EOS and Tron, both of which have made decent gains lately.
With the recent dip, Bitcoin’s relative strength index (RSI) is neutral around 62.78, with the MACD suggesting potential further losses coming. However, other than the short-term 5-day and 10-day, most moving averages are still sending a buy signal.
On the downside, Bitcoin will find support at $8,250 on the upper channel bearish line and stronger support around the psychological $8,000 level. Looking up, price congestion will present resistance at $8,750 with strong resistance above $9k at the $9,200 level.