The past few weeks have been volatile for Bitcoin
Last week, the cryptocurrency traded in the $ 2,000 range, down to $ 10,400 before dropping to $ 8,600 in a massive sale event that removed more than $ 100 million from positions.
On a smaller scale, Bitcoin has undergone rapid changes from $ 100 to $ 300 several times a day in the past two weeks.
Analysts have had mixed feelings about the price action.
Some argue that since the BTC was rejected at $ 10,400, the cryptocurrency is about to fall further. $ 10,500 has been a fundamental level for Bitcoin over the past year, acting as a reversal point for two key rallies, one in October and one in February.
However, analysts say the price action over the past few weeks looks strangely like Bitcoin in March 2019, before a vertical breakout that brought assets to $ 14,000.
Bitcoin is about to explode higher, according to a fractal analysis
Bitcoin's recent price action, including the $ 10,400 rejection, strangely resembles the price action seen in February and March 2019. What followed March 2019 was a recovery that carried assets at around 250%. more in three months.
“I think I've seen this before,” said an analyst. Note referring to the two previous tables. This fractal analysis predicts that BTC will reach $ 12,000 by the end of the month.
Another analyst echoed the claim that the recent bitcoin price action It looks like the model before the breakup in March 2019. He commented on the question:
“It becomes EXACTLY the same as in March 2019, a VERY slow and non-volatile job, everyone changes the bias by more than $ 50, the market seems dead But in the end, the nuclear weapons are weakening more and more and the pressure increases. “
Traders wait backwards
Traders in the crypto space expect an upward movement.
As NewsBTC previously reported, Bitfinex's order book showed last week that there is a clear confluence of purchasing pressure in the range of $ 9,500.
This is important because the last time there was such buying support on Bitfinex, it was when Bitcoin was trading at $ 7000. The backlog data also called for many trends in the past four months.
Other signs show that the average crypto trader is positioned higher.
Publication of Ecoinometrics cryptographic derivatives popular that there is now an open interest of $ 300 million in the CME Bitcoin call options market.
Call options are derivatives that allow the contract buyer to buy an asset at a specific price for a specified period of time. They are often used by investors who wish to profit financially from an appreciation in the value of assets.