Bitcoin prepares to rebound to $ 12,000 as price is historically bullish

After trying to decisively break more than $ 10,000 a second time in a week, Bitcoin was rejected, dropping as low as $ 9,200 for the umpteenth time in a few days.

The lukewarm price action has made some investors cautious about the possibility of further disadvantages for the flagship cryptocurrency, citing the loss of key support at $ 9,500.

However, prominent analysts have started to detect positive aspects on the Bitcoin chart that suggest an upside reversal, not a downward extension as some analysts expect.

Bitcoin is preparing for the next higher step

Apparently Bitcoin moves without rhyme or reason, but cryptocurrency, like any other asset, has patterns, rhythms that can give an idea of ​​future price trends.

Mohit Sorout, partner of the crypto hedge fund Bitazu Capital, already shared this model when he published the graph below, indicating that Bitcoin "loves to paint" this price action.

According to Sorout, Bitcoin followed this pattern exactly twice last year, once before going from $ 5,000 to $ 7,000, and again before going from $ 8,000 to annual highs of $ 14,000.

Considering that the action of Bitcoin prices over the past few days fits the left side of the diagram perfectly, a short-term increase to ~ $ 11,500 has become much more likely, according to Sorout's chart.

This is not the only positive sign

Sorout's scheme is not the only sign suggesting that Bitcoin will soon reach $ 10,000 to new heights.

The same operator who predicted that Bitcoin would peak at $ 3,200 six months before arguing this week that the BTC chart implies an imminent rebound towards the $ 12,000 region.

Referring to the graph below, the analyst commented that "Bitcoin [recently] has exceeded" a key technical resistance, while the cryptocurrency has maintained crucial technical levels. This led him to conclude that a move towards $ 11,500 in July is possible.

More recently, it Additional The historic downward trend of Bitcoin's $ 14,000 peak in 2019 was broken just a few days ago.

Bitcoin holding key technical levels while crossing the downward trend indicates that the action of BTC prices in recent days constitutes a consolidation above a resistance level, a signal that the trader considers bullish.

Bitcoin could also be fueled by positive fundamental events, such as the entry of billionaire hedge fund manager Paul Tudor Jones into the cryptocurrency space.

The Wall Street veteran revealed this week that he is investing around $ 100 million of his personal wealth in Bitcoin. The investor attributed his new belief in the benchmark cryptocurrency to central banks, which are printing no more money than ever to save the economy in crisis.

Alex Krüger, a highly respected economist who focuses primarily on cryptocurrencies, argument in a recent post that Jones' support for Bitcoin is probably one of the most optimistic events for space:

"The letter from Paul Tudor Jones is the most optimistic thing ever written about bitcoin, and it came from Tudor himself. I see it as a game changer. Think that many macro investors will follow. mandate and constitution take time. "

Photo by guangxi liu on Unsplash